21 States Sue Obama Over New Overtime Rules

Has there ever been a president that has been sued this much? His administration has sued numerous times over their lack of response to Freedom Of Information Act requests. They’ve been sued over regulations and rule making. It just continues on and on

(Fox News) President Obama is doing anything but closing out his lame duck term quietly. On the contrary he’s doing yet another end run around both the U.S. Congress and all 50 states, imposing yet another mandate that will cost money and jobs, possibly forcing states to raise taxes as well.

Twenty-one states have filed a federal lawsuit in U.S. District Court in Sherman, Texas, to stop him. Hours after the states filed their lawsuit, the U.S. Chamber of Commerce and other business groups filed a similar lawsuit with the same federal court.

Obama’s new mandate would force employers in all states to pay overtime to certain state employees. These employees include “bona fide executive, administrative, or professional” workers as they are not covered by the federal law that requires states to pay overtime for work performed beyond 40 hours in a week. The mandate applies to both private and public sector employers.

This seems to go back to Obama’s overtime decree, which would require employers to give certain people OT even though they are what is called “exempt” per law, which would mean fewer people being made management and more people having their hours limited. Oh, and more turned into part timers. As Andy Puzder, CEO of CKE Restaurants and a member of the Job Creators Network noted

(Forbes) The real world is far different than the Labor Department’s Excel spreadsheet. This new rule will simply add to the extensive regulatory maze the Obama Administration has imposed on employers, forcing many to offset increased labor expense by cutting costs elsewhere. In practice, this means reduced opportunities, bonuses, benefits, perks and promotions.

Perhaps the biggest consequence of the rule is that it will cause some employers to reclassify salaried employees as hourly, and set schedules so they can more easily track hours worked and avoid excessive claims for overtime. For example, taking a manager’s current salary and allocating it across 45 hours (with 5 hours of overtime pay) will result in no increased labor expense or increased salaries. However, it would mandate five hours of overtime, rather than allowing managers to take advantage of the flexible schedules they currently enjoy.

Back to the Fox article

As of now, starting December 1, 2016, all state employees will be entitled to overtime if they earn up to $913 per week regardless of whether they have “executive, administrative, or professional” responsibilities.

State government estimates peg the number of workers impacted at a minimum of 500 and reaching into the thousands, per state. Iowa projects its budget hit to be over $19 million, other states likely a lot more.

It’s a lot harder for government to get rid of employees than the private sector, and less ability to do things that limit costs. Since they are rarely in the business of providing products and/or service that generates revenue, their #1 option is to raise taxes to increase revenue. There’s another avenue available, as well

Not coincidentally, Nevada – through its Attorney General Adam Laxalt – is the lead plaintiff in this lawsuit.

In filing the suit Laxalt said: “This rule, pushed by distant bureaucrats in D.C., tramples on state and local government budgets, forcing states to shift money from other important programs to balance their budgets, including programs intended to protect the very families that purportedly benefit from such federal overreach.”

Barring new revenue, they would have to shift money, taken from the taxpayers, from programs and services that benefit the taxpayers into paying employees. This is all the typical Obama overreach, from a guy who has barely ever worked in the private sector or had to hire and employ and pay people. He has no working knowledge of how the economy works.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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