Washington, D.C. – Today, the Restaurant Law Center, the Texas Restaurant Association, the Plano Chamber of Commerce, and a coalition of national business groups filed a lawsuit in the U.S. District Court for the Eastern District of Texas seeking to vacate the Department of Labor (DOL) 2024 Overtime Final Rule (2024 Rule).
In the filing, the coalition argues that by issuing a rule raising the minimum salary for the executive, administrative or professional exemption far beyond a level which DOL is permitted to adopt and including an unlawful triennial “escalator” provision, DOL is acting in defiance of a previous decision by the Court.
The lawsuit highlights that countless employer members of the coalition associations will suffer irreparable harm from the loss of their employees’ previously exempt status. The costs of compliance will force many smaller employers and non-profits operating on fixed budgets to cut critical programming, staffing, and services to the public. Additionally, millions of employees across the country will have to be reclassified from salaried to hourly workers, resulting in restrictions on their work hours that will deny them opportunities for advancement and hinder performance of their jobs—to the detriment of their employers, their customers, and their own careers.
Finally, the coalition argues that including an unlawful escalator provision will exacerbate harmful impacts on businesses both large and small and contribute to rampant inflation already affecting the national economy.
“The Texas Restaurant Association is proud to partner once again with the Restaurant Law Center and other leading business organizations to file a lawsuit in Texas to stop federal regulations that violate law and threaten our economic vitality,” said Emily Williams Knight, Ed.D., President and CEO of the Texas Restaurant Association. “We look forward to defending restaurants in court against new overtime thresholds that even DOL estimates will cost local businesses billions of dollars at a time when we need to help these businesses become more resilient in face of inflation.”
"It is regretful that Department of Labor is forcing employers to relitigate issues decided when Court struck down 2016 Overtime Rule because its illegality," said Angelo Amador, Executive Director of Restaurant Law Center. "The 2024 Overtime Rule repeats errors 2016 Rule fails address flaws previously identified by Court."
Because first phase increased salary threshold scheduled take effect July 1 2024 coalition requested expedited consideration by court.
Read full complaint here.
