Written by Forrest Wall, CAE, Staff Vice President and Industry Relations
Lawsuits Join Legislative Efforts Against Overtime Rule
With the December 1, 2016 effective date looming, two legal challenges to the U.S. Department of Labor’s Overtime Rule have been initiated. By way of background, in May the DOL issued its final rule to increase the overtime pay threshold from $23,660 to $47,476 in the regulations governing eligibility for the white collar exemption. Additionally, the rule calls for the threshold to be updated every three years by indexing it to salary growth in the lowest income region of the country. Multiple legislative efforts were launched to delay or phase in the new threshold. However, the prospects for a legislative solution are dim given President Obama’s support of the rule as issued. Therefore, in September two lawsuits were filed challenging the rule. The first lawsuit was initiated by a coalition of business groups led by the U.S. Chamber of Commerce, and including the National Association of Home Builders. The second lawsuit comes from a group of twenty-one states, including Michigan. Both lawsuits basically allege that DOL went beyond its authority in the way it set the new threshold and included an automatic update every three years, and, that the rule violates the 10th Amendment of the U.S. Constitution (state sovereignty protection) by applying to state employees.
Apartment Inspection Reform Bill Has Hearing In House Committee
AAM initiated legislation to provide that lessee permission is needed prior to local government entry to inspect has begun its movement through the Michigan House of Representatives. House Bill 5561, sponsored by Representative Joe Graves (R-Linden), was brought before the Local Government Committee on September 21. I testified alongside Rep. Graves on the need for this important reform to the Housing Law of Michigan. Given the extended legislative recess prior to the elections, further action on the bill will take place in November and December.