NACS helps you file a lawsuit against overtime laws

Last month, the U.S. Department of Labor (DOL) issued a final decision on overtime regulations, updating and revising regulations under the Fair Labor Standards Act (FLSA). The new regulations provide exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales and computer workers. The rule provides for two-step increases in the minimum salary threshold and the threshold for highly compensated employees (HCE) and automatic updating of both thresholds.

When the final ruling was announced, Doug Kantor, general counsel at NACS, said: “We are disappointed that the Department of Labor has not listened to the realities of the problems that the overtime proposal will cause. By radically changing the law and treating every market in the country as if it were the same, the Department of Labor is harming both workers and small businesses. The rule will reduce workers’ flexibility, and its costs will fuel inflation. It is even worse for businesses and their employees than the one the courts overturned in 2017. We expect the rule announced today will also be challenged and invalidated.”

The NACS Coalition, of which he is a member, filed a lawsuit challenging the DOL’s overtime rule. The lawsuit states that in 2017, the court permanently ordered a DOL regulation, the “2016 Rule,” that was intended to dramatically increase the minimum wage required for executive, administrative or professional employees to be classified as exempt overtime work under the FLSA. The court also found unlawful the department’s attempt to reset the salary threshold every three years without additional notice or comment each time. The lawsuit says the plaintiffs are returning to court because the new overtime regulations conflict with an earlier order declaring them illegal.