Two separate lawsuits have been filed against the U.S. Department of Labor claiming that the new overtime rules, due to go into effect December 1, 2016, are unlawful. One lawsuit filed by 21 state governments claims the Final Rule is unconstitutional in that it increases the salary threshold level automatically every three years without legal authorization, among other issues. The second lawsuit, filed by over 50 business groups including the U.S. Chamber of Commerce, states that the new rules will escalate labor costs for states, local governments, and private businesses, resulting in layoffs and the elimination of jobs.
Despite these lawsuits and bills being passed through Congress, employers should continue to prepare to meet the new compliance standards by December 1, 2016.
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