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Overtime Expansion Challenges Multiply in Texas Federal Courts

June 4, 2024

The US Labor Department’s new overtime rule is facing three legal challenges in Texas district courts, as businesses, the state of Texas, and industry lobbying groups try to vacate the rule ahead of its implementation next month.

Two separate lawsuits filed Monday by software company Flint Avenue and the state of Texas contend that the rule is arbitrary and capricious, and that the DOL lacked the authority to issue the change…

And in Flint Avenue’s case at the US District Court for the Northern District of Texas, the company represented by the New Civil Liberties Alliance also alleges that the rule was improperly issued by Acting Labor Secretary Julie Su because she hasn’t been confirmed by the Senate.

“Acting Secretary Su is asking to be sued over DOL’s egregious behavior,” Mark Chenoweth, president of NCLA, said in a statement Tuesday on the suit. “Unlawfully overstaying her appointment, and now contriving this new FLSA rule that hamstrings small businesses, are a sure recipe for losing in federal court.”

… The cases are State of Texas v. DOL, E.D. Tex., No. 4-00499, complaint filed 6/3/24 and Flint Avenue LLC v. DOL, N.D. Tex., No. 5-00130, complaint filed 6/3/24.

Originally Published in Bloomberg Law

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