Several US business groups have filed a lawsuit challenging President Biden's new overtime pay rule. The rule, which was recently announced, aims to expand overtime pay eligibility to millions of American workers.
The lawsuit argues that the new rule will impose significant financial burdens on businesses, particularly small and medium-sized enterprises. The business groups claim that the rule will lead to increased labor costs and hinder economic recovery efforts.
Under the new rule, workers earning less than $35,568 per year would be eligible for overtime pay, up from the previous threshold of $23,660. This change is expected to benefit around 1.3 million workers who were previously exempt from overtime pay.
Supporters of the rule argue that it will help ensure fair compensation for workers and provide much-needed relief to those who work long hours. They believe that expanding overtime pay eligibility will help address income inequality and improve the financial well-being of American workers.
President Biden has defended the new rule, stating that it is necessary to protect workers' rights and ensure that they are fairly compensated for their labor. The Biden administration has emphasized the importance of strengthening labor protections and promoting economic justice.
The outcome of the lawsuit remains uncertain, as legal experts anticipate a lengthy legal battle over the new overtime pay rule. The case is expected to have far-reaching implications for labor policy and could shape the future of overtime pay regulations in the United States.
