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Law Prof: Indiana's Challenge To Overtime Rule Unlikely To Succeed

By Becca Costello

Posted September 21, 2016

Experts say Indiana's challenge to new federal rules concerning overtime are unlikely to hold up in court.

Indiana Attorney General Greg Zoeller joined 20 other states this week in challenging the new rules scheduled to go into effect Dec. 1.

The rules change the salary threshold that makes an employee eligible for overtime pay. Starting in December, anyone making less than $47,476 dollars a year will be paid time-and-a-half for working more than 40 hours a week.

"This interpretation of the law has been in place for a number of years," says Kenneth Dau-Schmidt, a professor of labor and employment law at Indiana University. "It's been tested before. The Supreme Court has already told us that the federal government does have the authority to impose the fair labor standards act against the states."

Dau-Schmidt says an argument against the pre-determined inflation adjustments may have a better chance of holding up in court.

"I think it makes sense that some state attorneys are going to want to challenge this," he says. "I don't give the challenge much chance in court though."

If the rules hold, the federal government estimates 87,000 Indiana workers will be affected.

Dau-Schmidt believes the court will come to a decision quickly.

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Law Prof: Indiana's Challenge To Overtime Rule Unlikely To Succeed

By Becca Costello

Posted September 21, 2016

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