The Trump administration’s controversial revamp of federal overtime rules, which is expected to cover fewer workers than a version of the rule advanced by the Obama administration, will be announced in the early fall, according to a Labor Department official.
“It will be posted after Labor Day and pre-Thanksgiving,” a senior Labor Department official told the Washington Examiner.
The Fair Labor Standards Act says employees must be paid time-and-a-half once they work more than 40 hours in a week. However, businesses may exempt workers from the requirement if their duties are “managerial” in nature and they reach a certain salary threshold.
The Trump administration’s proposed revamp would set that salary threshold at those earning up to $35,000 annually, up from the current level of $23,000. The Obama administration attempted to set the threshold at $47,000, but its 2014 rule change was struck down in federal court before it could go into effect. The matter was unresolved when the Trump administration took it off ice and opted to rewrite the overtime rule itself, announcing its version in March.
Former Labor Secretary Alexander Acosta argued during his Senate confirmation that while the rate should be increased, the Obama administration set the threshold too high and created problems for smaller business that needed more flexibility.
The Trump administration’s move has drawn criticism from labor groups for rolling back the prior administration’s changes and praise from the business community for loosening the regulations.
