Wisconsin Attorney General Brad Schimel challenges new overtime rule

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The National Retail Federation filed suit in U.S. District Court on Wednesday on behalf of the millions of employers and employees who it said will be drastically affected if the Labor Department's changes to the federal overtime rules go into effect on December 1.

The lawsuit states that Kentucky has about 1,600 state workers that would be newly eligible for overtime pay as a result of the rule.

Unusual said the change would force many state and local governments to eliminate services or layoff staff to cover the increase in employment costs. These states also challenge the new rule's mechanism by which the threshold salary would increase every three years, alleging that this would deplete state resources in violation of the Constitution.

The states are asking a federal judge in Sherman to issue an injunctionto prevent the rule from taking effect.

The new overtime rule will affect about 550 exempt Executive and Judicial Branch employees, roughly 20 percent of all exempt state employees.

According to the LePage administration, the new rules would mean that all salaried employees who earn less than $47,500 a year would be eligible for overtime pay.

Kansas Attorney General Derek Schmidt said the change will affect about 40,000 Kansas workers, including 550 employees working for state courts and administrative departments.

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On its website, the Department of Labor said the change will automatically extend overtime pay provisions to more than 4 million workers in the first year of implementation.

The U.S. Labor Department started finalizing the rule in May, saying that it would put more money into the hands of the middle class, or give them more free time.

The rule is expected to have broad effect on employers, workers and sectors including fast-food, retail, colleges and nonprofits.

"Longstanding federal law requires an overtime exemption for "bona fide executive, administrative or professional" employees", Laxalt said in statement.

According to the Department of Labor, the new salary level is set at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census region, now the South.

Strengthen overtime protections for salaried workers already entitled to overtime.

The DOL's new rule doubles that threshold to $47,476.