Governor LePage Joins Coalition of States Contesting Overtime Rule

Governor Paul LePage has joined a coalition of states who are challenging the Department of Labor's new overtime rule.

The new regulations are set to go into effect on December 1st, 2016 and are the result of an executive order from President Obama in 2014. That order required the Department of Labor to revise the Fair Labor Standards Act's overtime exemption for executive, administrative, and professional employees to account for the federal minimum wage.

On March 23rd of this year, the Labor Department issued the final draft of an overtime rule that will double the salary-level threshold for employees to be exempt from overtime. After December 1st, 2016, all employees who earn less than $913 a week are entitled to overtime, including state and local government employees. In addition, the new rule includes a 'racheting' mechanism that will automatically increase the salary-level every three years with out going through the regular federal processes.

The Portland Press Herald reports that LePage is listed as an individual plaintiff, and did not represent the state as Governor. This week, Governor LePage joined Nevada, Alabama, Arizona, Arkansas, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Nebraska, Ohio, Oklahoma, South Carolina, Texas, Utah, and Wisconsin in challenging the new rules.

"The rule will force many state and local governments to substantially increase their employment costs," Governor Lepage said of the new regulations. "Some may be forced to eliminate some services and even lay off employees."