This week, Kentucky, alongside 20 other states, sued the Department of Labor in a Texas Federal Court. The states’ Complaint, 4:16-cv-00731, attacks the DOL’s Final Rule that raises the salary minimum for exempt workers. That same day, numerous businesses and the Chamber of Commerce filed a similar Complaint, 4:16-cv-732, challenging the regulation.
The states contend that the Final Rule infringes upon state sovereignty and federalism by dictating the wages that a state must pay its employees. The states contend that “as a result of the new overtime rules and the accompanying damage to state budgets, states will be forced to eliminate or alter employment relationships and cut or reduce services and programs. Left unchecked, DOL’s salary basis test and compensation levels will wreck state budgets.” States’ Complaint at 84. As to Kentucky, the Complaint alleges that Continue reading