A group of U.S. business organizations have filed a lawsuit in Sherman, Texas federal court to stop the Biden administration’s rule that would require mandatory overtime pay for 4 million workers. The groups claim that the rule goes too far and will force businesses to cut jobs and limit worker’s hours. The rule would require employers to pay overtime premiums to workers who earn less than $58,600 per year when they work more than 40 hours a week.
The current overtime pay threshold was set at about $35,500 per year by the Trump administration in 2020, which many advocacy groups and Democrats criticized as insufficient. The business groups argue that complying with the new rule would lead many smaller employers and non-profits to cut critical programs, staffing, and services to the public.
The U.S. Department of Labor did not comment on the lawsuit. The agency stated that lower-paid salaried workers often do the same jobs as their hourly counterparts but work longer hours without additional pay. The groups involved in the lawsuit include the National Federation of Independent Business, the International Franchise Association, and the National Retail Federation.
The lawsuit was assigned to U.S. District Judge Sean Jordan, a Trump appointee who had previously blocked a similar rule in 2017 under President Trump’s administration. Another judge in Sherman, U
