Obama-era Rules Likely Done as Administration Reviews DOL Policy

Obama-era Overtime Rules Likely Done as New Administration Reviews DOL Policy

AUSTIN — After a Texas federal judge blocked then-President Barack Obama’s attempted expansion of overtime pay for millions of workers, the Department of Labor appears on the brink of retreating from the initiative altogether and putting a potential pay raise for millions of workers at risk. The Department of Labor recently sent a formal request to the Office of Management and Budget which will eventually trigger a notice-and-comment process that will likely lead to the Department either rolling back the overtime salary threshold or doing away with the increase.

Last year, the Department of Labor announced the overtime salary threshold would almost double from $23,660 to $47,476. Under the Fair Labor Standards Act (FLSA), certain classes of employees may be salaried but must perform certain duties vital to the day-to-day operations of the business. Consequently, these types of employees often work long hours for what can average out to be a less than sterling salary. If implemented, over 4 million workers were expected to see an increase of either their salary to become overtime eligible, depending on their individual situation.

Texas Federal Judge Blocks Proposed Overtime Threshold Expansion

However, a Texas federal judge almost immediately put a stop to the move after dozens of states’ Attorneys General filed suit in District Court challenging the authority of the Department of Labor to essentially promulgate laws. While the case remains under review in court, the new administration is likely to make the issue a moot point if the review goes the way many analysts expect it to.

Republican lawmakers have decried the proposed salary threshold increase, deeming it too steep for businesses to accommodate. Additionally, lawmakers and business owners point out the two-month notice period for such increases under the FLSA was too short for businesses to adjust. Unfortunately, the Department of Labor has not issued a salary threshold increase in a decade as families struggle to keep up with increased costs of housing, food, and basic necessities.

Overtime Pay Lawsuit

 Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.

Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.

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