The Department of Labor promulgated a rule raising the wage threshold for employees to qualify for overtime pay.The threshold wage before was $23,600 ($455 per week and established in 2004).At that level and below,the employee qualifies for overtime hours when the employee works over 40 hours per week.The newly promulgated level increases the wageto $47,476 (that is $913 per week).There were thousands of comments on the proposed changes during the public comment period.The Fair Labor Standards Act does not permit indexing of any wage numbers unless there is specific,new legislation passed to allow it.There is no legislation authorizing the increase.How can a business challenge the increase in the overtime hours level?

Question

The Department of Labor promulgated a rule raising the wage threshold for employees to qualify for overtime pay.The threshold wage before was $23,600 ($455 per week and established in 2004).At that level and below,the employee qualifies for overtime hours when the employee works over 40 hours per week.The newly promulgated level increases the wageto $47,476 (that is $913 per week).There were thousands of comments on the proposed changes during the public comment period.The Fair Labor Standards Act does not permit indexing of any wage numbers unless there is specific,new legislation passed to allow it.There is no legislation authorizing the increase.How can a business challenge the increase in the overtime hours level?​

Quizplus · Accepted Answer

The increase can be challenged as an ultra vires act because it exceeds the Department of Labor's authority under the Fair Labor Standards Act, which does not permit indexing or adjusting wage numbers without specific new legislation authorizing such a change.

The Department of Labor Promulgated a Rule Raising the Wage