Lawsuit Filed Against DOL Overtime Rule

The American Hotel and Lodging Association, the Restaurant Law Center along with 11 other business groups filed a lawsuit against the Department of Labor (DOL) contesting its new overtime rule.

The proposed overtime regulation is poised to substantially raise the exemption amount for executive, administrative, and professional employees. Specifically, the 2024 Rule outlines an increase in the overtime threshold to $43,888 effective July 1, 2024, and $58,656 effective January 1, 2025. Additionally, it includes a provision for automatic updates to the overtime threshold every three years based on wage data availability. This adjustment could potentially lead to a significant rise in employee labor costs for hospitality operators, exceeding 60%, and pose a considerable threat to numerous jobs, particularly in managerial roles that serve as important career advancement opportunities for employees nationwide.

"It is regretful that the Department of Labor is forcing employers to relitigate the issues that were decided when the Court struck down the 2016 Overtime Rule because of its illegality," said Angelo Amador, Executive Director of the Restaurant Law Center. "The 2024 Overtime Rule repeats the errors of the 2016 Rule and fails to address the flaws previously identified by the Court.”

Earlier this year, AHLA filed formal comments urging the DOL to consider the devastating impacts the rule would have on small businesses. AHLA Board Member Jagruti Panwala also testified before the House of Representatives to express hoteliers’ concerns over the proposed measure.