What happened: Late last week, the Restaurant Law Center (RLC), Texas Restaurant Association, and other business groups filed a lawsuit to stop the U.S. Department of Labor's (DOL's) 2024 Overtime Final Rule (2024 Rule). The lawsuit was filed in the U.S. District Court for the Eastern District of Texas and seeks to vacate the 2024 Rule, arguing it imposes illegal and harmful regulations.
Why it matters: This action aims to protect restaurants and businesses from significant financial burdens and operational challenges. The 2024 Rule is set to increase the overtime threshold to $43,888 on July 1, 2024, and to $58,656 on Jan. 1, 2025. It also includes an automatic update to the overtime threshold every 3 years based on available wage data. A note on timing: Because the first phase of the increased salary threshold is scheduled to take effect July 1, 2024, the coalition requested expedited consideration by the court. RLC POV: "It is regretful that the Department of Labor is forcing employers to relitigate the issues that were decided when the Court struck down the 2016 Overtime Rule because of its illegality," said Angelo Amador, Executive Director of the Restaurant Law Center. "The 2024 Overtime Rule repeats the errors of the 2016 Rule and fails to address the flaws previously identified by the Court.” Dive deeper: Learn more about the RLC's case.
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