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AG Strange Joins Coalition of States Challenging New U.S. Department of Labor Overtime Rule

(MONTGOMERY)– Attorney General Luther Strange today joined a coalition of 21states in filing a federal court complaint challenging the U.S. Department of Labor’s new overtime rule.

If implemented, the new rule will more than double the minimum salary threshold to
pay overtime for public and private workers, without Congressional authorization. The rule
will force many state and local governments to substantially increase their employment
costs. Some governments may be forced to eliminate some services and even lay off
employees. The complaint urges the court to prevent the implementation of the new rule
before it takes effect, which is scheduled for December 1, 2016.

“Once again, the Obama Administration has illegally expanded its own authority
without thinking about the costs or consequences to the American people,” said Attorney
General Strange. “State budgets are already tight, and this one-size-fits-all rule could result
in layoffs, understaffed government offices, and long lines for basic services. Ultimately, it
will be the people who suffer the most from this latest example of federal overreach. “

On March 13, 2014, President Obama ordered the Department of Labor to revise the
Fair Labor Standards Act’s overtime exemption for executive, administrative and
professional employees—the so-called “white collar” exemption—to account for the federal
minimum wage. On May 23, 2016, the Department of Labor issued the final new overtime
rule. It doubles the salary-level threshold for employees to be exempt from overtime,
regardless of whether they perform executive, administrative, or professional duties. After
December 1, 2016, all employees are entitled to overtime if they earn less than $913 a week—
including state and local government employees.

Additionally, the new rule contains a ratcheting mechanism to automatically increase
the salary-level every three years without going through the standard rule-making process
required by federal law.

In addition to Alabama, other states who joined this filing include: Arizona,
Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah
and Wisconsin.

Luther Strange
Alabama Attorney General


September 20, 2016
For More Information, contact:
Mike Lewis (334) 353-2199
Joy Patterson (334) 242-7491

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