FLSA 

States and Business Groups File Separate Challenges To OT Rule

J.R. Randall , ,

States and Business Groups File Separate Challenges To OT Rule

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The anticipated legal challenges to the Department of Labor’s Final Rule regarding the salary level for white collar exempt employees were lodged yesterday through two separate lawsuits filed in the Eastern District of Texas.  State of Nevada et al v. United States Department of Labor et al, E.D. Texas 16-CV-407; Plano Chamber of Commerce et al v. Perez et al, E.D. Texas 16-CV-732.  In the first, twenty-one states challenge most aspects of the Final Rule, including its application to the states themselves.  In the latter, the U.S. Chamber of Commerce and other business groups attack the new salary level as “arbitrary,” and also challenge the Rule’s 10% cap on the use of non-discretionary incentive compensation to satisfy the salary level requirement.  As of this writing, court records reflect that the states’ lawsuit is assigned to Chief Judge Ron Clark, a 2002 appointee of President George W. Bush, while the business’ groups case is assigned to Judge Amos L. Mazzant III, appointed in 2014 by President Obama.  Full coverage is available here.

FLSA

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September 21, 2016 at 04:11AM

J.R. Randall

J.R. Randall is an economist who resides in the Bay Area. He focuses his interest on range of economic topics. He has interest in deep sea fishing and art.