A coalition of U.S. business groups has filed a lawsuit to block a Biden administration rule extending mandatory overtime pay to 4 million workers, arguing that it goes too far.
Key Points
The new rule would require employers to pay overtime premiums to workers earning less than $1,128 per week.
The threshold set by the Trump administration in 2020 was about $35,500 per year.
The lawsuit was filed in Sherman, Texas federal court.
The case was assigned to U.S. District Judge Sean Jordan.
Pros
The rule aims to provide overtime pay to lower-paid salaried workers who work more than 40 hours a week.
Advocacy groups and many Democrats support the increase in the salary threshold to benefit more workers.
Cons
Business groups argue that the rule will force many smaller employers and non-profits to cut jobs and limit workers' hours.
Some judges have previously blocked similar rules, citing concerns about the impact on management employees.