Time is Money: 21 States File Suit to Block New Overtime Rule

On Tuesday, 21 states, including Georgia, filed a lawsuit in a federal district court in Texas challenging the Department of Labor's new rule expanding overtime pay. The rule, set to take effect Dec. 1, will require employers to pay overtime to salaried workers earning less than $47,500 a year, double the current threshold of $23,660. A coalition of business groups also filed a challenge to the rule. Both of Tuesday's lawsuits said the DOL abused its authority by increasing the salary threshold so drastically, and also failed to account for regional variations in the cost of living.

At this point, the lawsuits have no effect on the effective date of the new rule, which will have a significant impact on many employers. To stop the implementation of the new rule, the parties will need to convince a court to enter an injunction before December 1. We will be watching this situation closely. In the meantime, employers need to continue preparing for the December 1 effective date.