21 States Against the New Obama Attempt End Run Around Congress
The outgoing President Barrack Obama is doing another end round involving the Congress and all 50 states. This action imposes a mandate that will cost money and jobs. It may also force states to increase taxes. 21 states have decided to counter by filling a federal law suit in U.S District Court in Sherman, Texas. The U.S chamber in commerce and other business groups have also filed a similar law suit with the same court.
This new mandate would require employers in all states to pay overtime certain state employees. These include executive, administrative and professional. This group is not covered by the federal law which requires states to pay overtime for work done beyond 40 hours a week. Obama`s mandate applies to both public and private employers. This new rule has serious economic implications among states, local governments, private and public employers. This mandate does not follow the due process which falls under Congress. 21 states consisting of governors and attorney generals are trying their best to stop this federal rule.
It is justified for employers to pay workers overtime, whether in public or private sector. The whole mandate has not been effected yet since many states are trying to balance their current budgets. However, this mandate will take effect early in December. The counter law suit is supported by the law which states that individual states should decide first about this change. From there they can ask the Congress to change the law.
President Barrack Obama put this mandate in motion a couple years ago when he told his Labor Department to change this exception for state employees. The department has succeeded in raising the minimum salary overtime by at least 100 percent. This new mandate requires states to raise this cutoff higher after every three years. As of 1st December 2016, all employees earning $193 per week will be entitled to overtime. This applies to all categories in terms of responsibilities; whether executive, administrative or professional.
On the other hand, a coalition of states has filled up a law suit to stop the implementation of this overtime rule. This is an effort of conserving constitutional rights and protect the economy which will suffer long after Obama`s term. This is meant to protect employers and states who will be required to increase their budget to fund this law. Filing a law suit against the administration is the final resort against an overreach of federal law.
Obama`s mandate violates the Fair Labor Standards Act which states that only the congress has the power to establish a federal hourly minimum wage. The presidential government which has doubled the federal deficit is now going around congress to force states and local governments to pay certain employees more. It also violates the constitution by forcing states to pay their workers high wages at the expense of state budgets, government programs and services. The initial law by the Labor Department also violated the law since all changes were done without Congressional authorization.
The government estimates that thousands of workers per state will benefit from this overwork mandate. The president’s new rule will also raise the minimum salary after every three years automatically. However, this will require states to raise their budgets which translates to more taxes. For instance, the budget of Iowa state projects will increase to $19 million. The tourism industry and small businesses in Nevada will also be affected.
The Nevada Attorney General, Adam Laxalt, a lead plaintiff in the law suit is very vocal about this mandate. He indicated that this rule will strain local government budgets and force states to divert funds from important programs in order to fund the budget. Officials will be required to make hard expenditure choices.