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A Trump administration overtime rule change may borrow from these efforts
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The ruling by a federal district court judge in Texas that
placed a nationwide injunction on the Department of Labor's (DOL's) overtime rule revision under the Fair Labor Standards Act (FLSA), halting it from taking effect on Dec. 1, has
casts doubt on whether the revisions will go forward in their current form.
The Justice Department
appealed the injunction on Dec. 1, but many believe the Trump administration is unlikely to pursue the appeal.
For more overtime compliance news, tips and tools, check out the SHRM resources provided below:
It's also uncertain what, if anything, will happen with legislation introduced in Congress to block—or at least slow down—the revised rule's controversial doubling of the salary threshold for exempt employees from $23,660 to $47,476.
employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours work over 40 in a workweek.
Online's Allen Smith
previously reported, a flurry of bills to delay or phase in the final overtime rule are awaiting congressional action. With implementation of the DOL rule now halted, these congressional alternatives are getting a second look for signs of what the Trump DOL might proposed once it's in place:
[SHRM members-only toolkit: Determining Overtime Eligibility in the United States]
A New Game
In the event that the DOL's overtime rule remains blocked, as many now believe is likely, the incoming Trump administration could introduce its own overtime rule that is less burdensome for employers and with a less-steep increase in the exempt-status salary threshold.
Trump has said that he
favored a small business exemption from the proposed higher salary threshold under the new overtime rule, but that was before the injunction was issued. Now, instead of tweaking Obama's overtime rule, the Trump administration's DOL
may chart its own course—perhaps to be inspired by some of the alternative approaches outlined in the bills before Congress.
SHRM Online Article:
Trump Faces Choice on Overtime Rule Appeal,
SHRM Online Employment Law, December 2016
Democrats Pledge a Fight to Restore Overtime Rule, SHRM Online Compensation, December 2016
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