The International Warehouse Logistics Association, the resource for warehouse logistics, filed suit alongside a coalition of trade associations and the U.S. Chamber of Commerce in opposition of the U.S. Department of Labor’s (DOL) overtime rule. The suit, filed in the U.S. District Court for the Eastern District of Texas on September 20, questions the statutory authority of the DOL under the Administrative Procedure Act.
“Not only is the DOL overreaching its authority by implementing the rule, but the rule itself increased the salary threshold to be excessively burdensome,” said IWLA president and CEO, Steve DeHaan. “Warehousing and logistics creates new jobs every day. As it stands, the overtime rule will hinder this creation and decrease upward mobility in this sector. The IWLA will do whatever it takes to fight the DOL’s unjustified actions.”
At the heart of the issue is the unprecedented, more than 100 percent increase to the minimum salary threshold—from $455 per week to $913—resulting in limited workplace flexibility and increased labor costs for businesses across the country. The new rule also promises an ongoing increase to the salary threshold every three years.
The rule, which falls under the Fair Labor Standards Act, is ironically predicted to create an unfair job market. “The Fair Labor Standards Act was created to promote fair and honest labor protections for workers. The outcome of this rule could very well have the opposite effect, as business owners scramble to reduce pay and overtime hours. And this will impede employees from advancing to higher positions as employers try to keep additional expenses at bay,” DeHaan said.
The overtime rule is scheduled to take effect on December 1, 2016. View the lawsuit here.