APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION /
NATIONAL MULTIFAMILY HOUSING COUNCIL
Lawsuit Filed by 21 States Challenges
President Obama’s Overtime Rule
O
fficials from 21 states and a coalition
of business groups led by the U.S.
Chamber of Commerce filed a pair
of lawsuits on Sept. 20 challenging
the Obama Administration's final overtime rule.
The dual lawsuits contend that the Labor Department exceeded its authority by finalizing such a
large increase, as well as by including a provision
that would automatically increase the threshold
every three years to the 40th percentile of income
in the nation's lowest-earning region.
Specifically, effective Dec. 1, the controversial
overtime rule lifts the overtime pay threshold
from $23,660 to $47,476. The rule is expected to
impact 4.2 million executive, administrative and
professional employees who are paid by the hour
or earn less than the threshold.
The final rule would harm the ability of apartment housing employers to implement, and their
impacted employees, including property manag-
30 | TRENDS • OCTOBER 2016
ers at traditional apartment and student housing
developments, to take advantage of flexible scheduling options. In addition, the rule would limit
career advancement opportunities for employees.
The rule also goes far beyond the apartment housing industry and has the potential to affect employees at colleges and universities who serve
student housing residents.
Please join us on Oct. 25 when NAA/NMHC
will host a members-only webinar regarding guidance on implementing the overtime rule. Prepared
by Jennifer Redmond and Brian Fong of Sheppard
Mullin, the guidance describes the rule in detail
and provides issues for own