September 23,  2016
Ohio and 20 other states challenge 
DOL'S new overtime rule in federal court
 
Dec. 1, 2016 is fast approaching, which is when the  new rules promulgated by the U.S. Department of Labor (DOL) are set to go into effect. The rule change would affect the Fair Labor Standards Act by raising the white collar overtime exemption from $23,660 per year to $47,476 per year. The rule change is estimated to affect more than 130,000 employees in Ohio, making them eligible for overtime pay. This would apply to both the private and public sectors in Ohio, including all 88 counties.
 
Twenty-one states, including Ohio, filed a lawsuit on Sept. 20 in the U.S. District Court, Eastern District of Texas challenging the DOL rule and asking the Court for a declaratory judgment on the matter. The challenge is predicated on three arguments:   

1.    DOL does not have authority to pass the final rule,
2.    The final rule's automatic indexing of the salary test every three years is not constitutional and violates the Federal Administrative Procedures Act, and
3.    The rule is unconstitutional as applied to the states because it violates state sovereignty. 

It is unclear at this time if the court will rule on the merits before the rule's effective date, or if a stay will be requested by the states to stop or postpone the rule from going into effect while it is being litigated.
 

 
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