ABA joined 94 associations in sending a letter Wednesday urging the Department of Labor to stay the effective date of the overtime final rule to allow for judicial review. The rule, set to take effect July 1, would dramatically increase the number of employees subject to the Fair Labor Standards Act’s minimum wage and overtime requirements.
The rule increases the salary level below which an employee is automatically subject to the FLSA’s requirements, from the existing $35,568 threshold to $43,888 as of July 1, and then to $58,656 as of Jan. 1, 2025. Several legal actions could impact the validity of the new rule, including a lawsuit filed the U.S. Chamber of Commerce and other business groups last month that challenges the validity of the increase in the salary level that would be created by the rule.
Postponement of the rule’s effective date “ensures that impacted businesses and the agency itself do not waste valuable resources by attempting to come into compliance or implement a rule that could be invalidated by a court,” the associations said. “Many workers will be reclassified if the final rule goes into effect, resulting in them losing workplace status, access to benefits, flexible work arrangements, or career development opportunities.”
