More than 50 state and national business groups are suing the U.S. Department of Labor to block a new rule that would extend overtime eligibility to more than 4 million workers.

The lawsuit—filed in U.S. District Court for the Eastern District of Texas—alleges the Labor Department exceeded its statutory authority in adopting the rule, which raises the salary threshold for qualifying for overtime pay from $455 to $913 a week. The change takes effect Dec. 1.

"Doubling the wage floor for the overtime exemption will cause a spike in costs for employers and impose unrealistic restrictions on the work that can be performed by managers and the ‘all-hands-on-deck' entrepreneurial approach to labor management that fosters teamwork and promotes operational excellence," said Robert Cresanti, CEO of the International Franchise Association, one of the plaintiffs in the lawsuit.

Many industries that rely on low-wage labor believe the rule will hamper their ability to turn a profit. Retailers are one such group, with National Retail Federation deriding the rule as "a massive government overreach of executive authority."

"The Labor Department's extreme and reckless changes to the overtime rules will hobble the career paths of millions of Americans trying to climb the professional ladder," NRF Senior Vice President for Government Relations David French said.

In addition to IFA and NRF, the U.S. Chamber of Commerce, National Automobile Dealers Association, National Association of Manufacturers, American Bankers Association and ASAE have joined the lawsuit. http://bit.ly/2cRutN6

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