Biden Administration Overtime Pay Rule Lawsuit

SOURCE finance.yahoo.com
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.