Iowa’s governor has signed onto a legal challenge of new overtime rules for so-called “white collar” workers.
Governor Terry Branstad says the new overtime rule will cost the State of Iowa, the three state universities and local governments more than $19 million in additional salary costs in the first year.
The new rule on overtime pay is scheduled to go into effect December 1. Iowa is among 21 states suing to block the rule. It would make executive, administrative and professional workers who earn nearly 50-thousand dollars a year eligible for overtime pay.
The Obama Administration has said raising the threshold for overtime would impact four million American workers. Governor Branstad calls it an “unfunded mandate” on states. He predicts “some governments may be forced to eliminate some services and even lay off employees.”