21 states sue US over new overtime pay rule

Twenty-one states and a coalition of over 50 business groups filed suit this week seeking to block the federal government's new overtime pay rule.

The suits were filed in Texas and Nevada on behalf of their states and 19 others. The groups claim the rule - which would double who qualifies for overtime pay to a salary of $47,476 a year from $23,660 - violates the U.S. Constitution and exceeds congressional authority.

Led by the U.S. Chamber of Commerce, the business groups claim the rule would require employers to limit hours or cut base pay for workers to offset added payroll costs.

In addition to Texas and Nevada, plaintiffs in the suit filed by states include Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, New Mexico, Ohio, Oklahoma, South Carolina, Utah and Wisconsin.

Read more from The Wall Street Journal.