Texas suing Department of Labor over overtime rule

Texas Attorney General, Ken Paxton says it would be devastating for jobs in our state if the rule takes effect in December. Back in May, the U.S. Department of Labor released its new overtime rule pertaining to salaried workers.

“Basically doubled how it applies. It used to apply to people making $23,660 or less. It more than doubled to $47,500.

Paxton is not happy about it.

“All of those employers are going to have to make a decision on paying employees, whether they keep them or give them this higher pay so that's a concern,” said Paxton.

With Texas and Nevada leading, a coalition of 21 states filed a lawsuit Tuesday retaliating against the Obama administration.

“We think they have exceeded their statutory authority,” said Chris Wallace, president Texas Association of Business.

The TAB filed their own separate lawsuit pertaining the new rule.

“What many have told us is they would rely on laying people off,” said Wallace.

Downtown business owner bob woody is indifferent about what happens but he makes it clear, he wants to protect his employees. Many business coalitions also say the rule could  demote salaried employees.

“Some of our salaried staff may not work enough to go over the threshold so that's a concern for me because I don't want their jobs to become hourly,” said Bob Woody, business owner.

If the AG had President Obama sitting in front of him, he would tell him this: "I think you need to be concerned about labor but also whether we'll have jobs...not controlling from DC, wages,” said Paxton.

The Department of Labor did not have a comment on this particular rule. They did say back in 2014 the president directed the department to update its regulations to ensure fair pay for a hard day's work. The rule would take effect December 1.