WASHINGTON—NAFCU has joined with 59 other business associations in an amicus brief filed in support of groups that claim the Department of Labor’s overtime rule will increase costs for businesses and may force the demotion or layoff of workers.
The law is currently on hold following a temporary injunction put in place by a federal judge in Texas. The Labor Dept. is now appealing the injunction, although many expect the Trump Administration will drop the appeal.
The lawsuit against the rule includes as plaintiffs the state of Michigan and 20 other states that claim that the overtime rule will increase costs and force the cut of essential government services. The U.S. Chamber of Commerce and other chamber and trade groups are also a part of the lawsuit.
The Labor Department’s rule, which raises from $23,660 to $47,476 the salary threshold at which employees are eligible for overtime pay under the Fair Labor Standards Act, went into effect Dec. 1.
While NAFCU said it believes all American workers should be granted access to fair pay, the association has raised concerns that the rule fails to adequately consider geographic salary differences or provide exemptions for non-salary-based employee advancement opportunities, such as travel time for conferences or training opportunities.
The amicus brief said the business associations “face significant monetary costs and regulatory burdens as a result of the Rule.” The brief argues that the Labor Department’s overtime rule is “inconsistent with the text, structure, and purpose of the white-collar exemption” in the FLSA and is “unreasonable even if the statutory text were ambiguous.”