Lawsuit Filed Challenging Department of Labor’s Overtime Rule

Plano, TX - September 22, 2016 - The Plano Chamber of Commerce joined the U.S. Chamber of Commerce, the Texas Association of Business, more than 40 other chambers of commerce throughout the state of Texas, and other business organizations and sector-specific business groups in filing a lawsuit against the new Department of Labor overtime rule, which goes into effect December 1.

The lawsuit was filed in the Eastern District. Although the coalition includes local chambers of commerce across the state of Texas, there are 11 Texas chambers headquartered within the Eastern district.

The lawsuit advances three kinds of legal arguments against the Department of Labor’s overtime rule: 1) the excessively high salary threshold contradicts the intent of Congress to have executive, administrative, and professional employees exempt from overtime; 2) the new automatic update provision, which would impose new salary thresholds every three years without going through rulemakings, is not authorized by the FLSA, and in fact the FLSA directs the secretary to make changes to these exemptions through the notice and comment regulatory process; and 3) the Department acted arbitrarily and capriciously in promulgating its new overtime rule, in violation of the federal Administrative Procedure Act.

“The U.S. Chamber and its federation of state and local partners have been highly active in this rulemaking from the outset,” Plano Chamber President/CEO Jamee Jolly said. “We surveyed our membership when the changes were first proposed and collected feedback regarding the potential impact to local businesses. It was clear that our local business community would be adversely impacted by the new regulations,” Jolly said.

The U.S. Chamber and its representatives with the Secretary of Labor before the regulation was proposed, submitted extensive and comprehensive comments describing in detail the problems this regulation will cause, and have explained at every step how the Department has gone too far.”

The Department of Labor’s new overtime rule will limit workplace flexibility, impede career and promotion opportunities, and will make it harder for businesses and nonprofits to expand to meet the needs of their customers and constituents, in addition to imposing significant new economic costs.  The new overtime rule will be particularly damaging to nonprofit organization, including trade associations and chambers of commerce that will be subject to the rule.

In addition to the suit, a coalition of 21 states filed a challenge reinforcing the range of entities that will have severe problems complying with this regulation.

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About the Plano Chamber of Commerce: Established in 1946, the Plano Chamber represents over 1,100 businesses and community organizations in Plano and the surrounding area. Accredited as a 5-Star Chamber of Commerce in 2015 by the U.S. Chamber of Commerce, the Plano Chamber of Commerce is committed to maximizing business development and economic growth of the community through advocacy, education, innovation, and collaboration. 

MEDIA CONTACT: Jamee Jolly
Phone: 972.424.7547, ext. 222
Email: jjolly@planochamber.org