The Labor Department sent a proposed rewrite of the federal regulations covering overtime to the White House Monday for final approval, according to Trump administration officials.
The regulations are expected to expand the number of workers covered by the rule by an estimated 1.2 million, fewer than the 4 million envisioned in an attempt to rewrite the rule by the Obama administration.
“I can confirm the rule has been submitted for review,” said a senior administration official. A Labor Department official also said it had been sent over to the White House Office of Management and Budget. The proposed draft of the rule will be posted online Tuesday. There is no scheduled date for when the administration will complete its review of the proposal. Liberal groups are expected to challenge the change once it becomes official.
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 in 2014, but its rule change was struck down in federal court before it could go into effect. The matter was unresolved when the Trump administration took office, and it 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 businesses 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.
