Small businesses challenge DOL's new overtime rule in court

Webp d9f32z5qf2mznic9iwqtt5tz92xz
Brad Close National Federation of Independent Business | Official Website

Small businesses challenge DOL's new overtime rule in court

The National Federation of Independent Business (NFIB) has joined a lawsuit challenging the Department of Labor’s (DOL) final overtime rule. Filed in the U.S. District Court for the Eastern District of Texas, the lawsuit aims to block the implementation of the new rule set to take effect on July 1, 2024.

The rule significantly increases the salary threshold for overtime pay eligibility and includes provisions for automatic future increases. "DOL’s final rule is an additional complicated and expensive government mandate that small businesses have to navigate at a time when small business optimism is historically low," said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. "DOL does not have the legal authority to raise the salary threshold or include automatic updates. The small business community asks the Court to consider the needs of Main Street and stop DOL from enforcing this onerous regulation."

NFIB had previously opposed the final rule when it was issued in April 2024.

The NFIB Small Business Legal Center actively protects the rights of small business owners in courts across the nation. Currently, NFIB is involved in more than 40 cases in federal and state courts, including cases before the U.S. Supreme Court.

###