On Sept. 20, chambers of commerce from McKinney, Allen-Fairview, Plano and Frisco joined over 50 Texas businesses and organizations in taking legal action against a U.S. Department of Labor overtime rule, which goes into effect Dec. 1.

Texas and national business organizations, led by the U.S. Chamber of Commerce, the National Association of Manufacturers and the Texas Association of Business, filed a lawsuit in U.S. District Court that alleges the new overtime rule will negatively impact businesses. The legal challenge alleges the federal government “went too far in the new regulation.”

“Our board [decided] to join this lawsuit because of the widespread impact it will have on business, especially small businesses,” said McKinney Chamber of Commerce President, Lisa Hermes. “It is important that we represent our members and believe joining a coalition with chambers and associations across the nation is an important step in giving the McKinney business community a voice on this issue.”

The rule changes the salary threshold for those who are exempt from receiving mandatory overtime pay. Currently, full-time, salaried workers making $23,660 or more per year do not qualify for overtime pay. Under the new rule, that salary level changes to $47,476 or more per year Dec. 1.

The DOL said 4.6 million U.S. employees currently exempt from overtime pay would receive overtime protection under the rule, which the department argues would help workers receive fair compensation for their work.

U.S. Secretary of Labor Thomas Perez said in a statement that he expects the rule to withstand legal scrutiny, dismissing the lawsuit as a partisan attempt to undermine the Obama administration’s labor policies.[totalpoll id="189874"]

“Despite the sound legal and policy footing on which the rule is constructed, the same interests that have stood in the way of middle-class Americans getting paid when they work extra are continuing their obstructionist tactics,” Perez said.

The new overtime rule was intended to “restore the intent” of the Fair Labor Standards Act, whose protections have eroded, he said.

Randy Johnson, U.S. chamber vice president of labor, immigration and employee benefits, said in a statement that the policy would result in significant new labor costs and cause “disruptions” in the labor market.

“The new overtime rule will result in salaried professional employees being converted to hourly wages, and it will reduce workplace flexibility, remote electronic access to work and opportunities for career advancement,” Johnson said.

The suit states that by setting an excessively high salary threshold for determining who qualifies as “executive, administrative and professional employees,” the rule departs from the intent established by Congress in the FLSA.

The state of Texas also announced its own federal lawsuit against the rule, joining a coalition of 21 states.