U.S. business groups sue to block Biden administration’s overtime pay rule

A coalition of U.S. business groups has taken legal action to block a Biden administration rule that would extend mandatory overtime pay to 4 million workers, arguing that it goes too far and would have detrimental effects on businesses.

The lawsuit, filed in Sherman, Texas federal court, claims that the U.S. Department of Labor overstepped its authority in adopting the rule and that it would ultimately lead to job cuts and reduced hours for workers. The rule would require employers to pay overtime premiums to workers earning less than $1,128 per week, significantly higher than the current threshold set by the Trump administration.

The business groups involved in the lawsuit, including the National Federation of Independent Business and the National Retail Federation, argue that the costs of compliance with the new rule would force many smaller employers and non-profits to make cuts to critical programming and services.

The Labor Department, in defense of the rule, stated that lower-paid salaried workers often perform the same duties as hourly workers but do not receive additional pay for working longer hours. The new rule aims to address this disparity and ensure fair compensation for all workers.

The case has been assigned to U.S. District Judge Sean Jordan, appointed by former President Donald Trump. The outcome of this legal battle will have significant implications for millions of workers and businesses across the country.

As the debate over the overtime pay rule continues, it remains to be seen how the court will rule and what impact it will have on the future of labor regulations in the United States. Stay tuned for updates on this developing story.