Trump Labor Department Moves to Undo Obama Overtime Rule

By  @ Insurance Journal/Reuters…..| July 27, 2017

The Trump administration on Tuesday pushed forward with its bid to undo an Obama administration rule to extend mandatory overtime pay to 4.2 million workers and said it was considering treating workers differently based on location and industry.

The rule, which was supposed to take effect in December 2016 but was blocked by a federal judge, is a top target for business groups that say it would force employers to convert many salaried employees into hourly worker.

The U.S. Department of Labor on Tuesday called for public comments on the rule, which is the first step in revoking or revising it.

The rule would have doubled to $47,000 the maximum salary a worker can earn and still be eligible for mandatory overtime pay under federal wage law. A group of 21 states and business groups including the U.S. Chamber of Commerce challenged the rule in a lawsuit filed last year.

The Labor Department appealed the judge’s decision temporarily blocking the rule to a New Orleans-based U.S. appeals court weeks before President Donald Trump took office in January.

Earlier this month, the department defended its power to base overtime eligibility on workers’ salaries in a brief submitted to the court. But the agency made clear that it did not agree with the threshold set by the Obama administration.

On Tuesday, the department said in light of the pending appeal, it decided to issue a request for comments rather than skip immediately to rescinding or revising the rule….

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