In opposition to the updated Department of Labor’s Overtime Rule, the Associated Builders and Contractors (ABC) and a coalition of business groups filed a law suit in the U.S. District Court for the Eastern District of Texas against the department.
In a press release, ABC Vice President of Legislative and Political Affairs Kristen Swearing emphasized ABC’s view that the overtime rule is both costly and burdensome,
The Department of Labor overstepped its statutory authority by dramatically increasing the minimum salary for exempt employees and by automatically updating the salary threshold. The unprecedented automatic indexing provision circumvents the intent of Congress under the Fair Labor Standards Act and is particularly problematic for construction business owners who often need to project costs and workforce needs over multiple years for projects managed by exempt employees.
ABC has been a vocal opponent of the overtime rule, having submitted comments in opposition. The overtime rule was released on May 18 and alters DOL’s minimum salary requirements for benefits. The rule will take effect on Dec. 1 and adds 4.2 million workers to the pool that must be paid 1.5 times their hourly wage for each hour worked beyond 40 hours a week. ABC argues that the overtime rule will impose an unnecessary burden on small businesses.
To read the full release, click below.