Michigan joined a coalition of 21 states last week to sue the U.S. Department of Labor over an aggressive new rule that would substantially increase the number of workers qualifying for overtime. Also filed on the same day, the U.S. Chamber of Commerce and other business groups brought their own separate legal challenge of the overtime rule. The Michigan Chamber welcomes this news because the overtime rules slated to go into effect later this year go too high, too fast and would have a negative impact on employers and employees alike.
Nevada Attorney General Adam Laxalt filed the states’ lawsuit in U.S. District Court in Eastern Texas on Tuesday, Sept. 20, urging the court to block implementation before the regulation takes effect on Dec. 1. Michigan’s Attorney General Bill Schuette joined the suit along with plaintiffs from Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Mississippi, Nebraska, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin. The Eastern Texas district, where the lawsuit was filed, is known as a "rocket docket" court because cases move along quickly.
Like the states' lawsuit, the business groups' complaint challenged the automatic triennial increase in the salary threshold. The business groups also filed suit in the U.S. District Court for the Eastern District of Texas.
More information on the overtime regulations is available on the Chamber's website under Explore the Issues.