The American Bakers Association (ABA), along with a coalition of business groups, filed suit against the U.S. Department of Labor’s (DOL) misguided final overtime rule that will double the current exemption threshold and give little time for bakers to implement the new standard.
“This regulation severely limits workplace flexibility in the baking industry, adds uncertainty and dramatically increases red tape,” said Robb MacKie, ABA President and CEO. “Time and resources that would otherwise be spent on creating jobs and expanding business opportunities will now be used to comply with this new rule.”
The DOL overtime rule will dramatically raise the monetary threshold at which employees can qualify for the overtime exemptions and allows the threshold to increase with inflation. The lawsuit asks the court to set aside the new rule on the grounds that the DOL overstepped its regulatory authority and seeks to bar the DOL from implementing the rule until the court has finished reviewing the case. The rule is currently set to go into effect on December 1.
ABA has been a vocal opponent of the DOL’s new overtime exemption and is a strong supporter of the Protecting Workplace Advancement and Opportunity Act, a bill seeking to prevent the DOL from implementing its proposed changes to the overtime salary threshold and ensure that any future changes occur only after the economic effects have been rigorously analyzed.