Alabama suing President Obama's overtime rule

Mike Finnegan

The state of Alabama, alongside 20 other states and numerous business interest groups, is suing the Department of Labor for announcing a ruling that would expand the amount of Americans capable of receiving overtime pay.

The Department of Labor’s ruling, which was announced back in May of this year and scheduled to take effect Dec. 1, would expand those eligible to receive overtime pay from those making under $23,600 a year to under $47,476 a year. Estimates from the Department of Labor said upwards of 4 million Americans would be affected by the new overtime pay rule.

The state of Texas leads the litigation efforts as Texas’s Attorney General Ken Paxton filed the first complaint in the federal court in Sherman, Texas.

Opponents of the ruling challenge the Obama Administration on two fronts. One is that the overtime pay would cause pressure on businesses and state budgets, forcing an undue burden on taxpayers in the form of 
longer waits and higher taxes. The 
second is how the ruling is an overreach of 
executive authority as a way to 
circumvent congress.