Trump administration will rewrite Obama-era overtime rule

Published July 3, 2017 9:17pm ET



The Trump administration said in a Texas court filing that it would rewrite an Obama-era rulemaking that dramatically expanded the number of workers covered by federal overtime rules, the latest example of the administration rolling back rules put in place by the previous White House.

Under former President Barack Obama, the Labor Department last year doubled to $47,000 the minimum annual salary threshold a worker must make before he or she can be deemed a “managerial” worker and therefore exempt from federal law requiring that they are paid time and a half after working 40 hours in a week. Business groups sued to overturn the rule, which they said raised the rate far too much. A Texas court struck it down on procedural grounds late last year. The Obama administration swiftly appealed but was unable to resolve the issue before the new administration took over.

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