Obama-era rule expanding overtime pay under review
WASHINGTON — The Labor Department said it is formally requesting feedback on a rule that would expand overtime pay to millions ofworkers, a sign that the Trump administration could move to scale it back.
Labor Secretary Alexander Acosta had previously said he planned to review the pending regulation, which would more than double the income threshold that determines which workers should be eligible for overtime pay to about $47,500 a year, from the current threshold of $23,660 a year. Workers earning less than that income level qualify to earn one and a half times pay for any hours worked beyond 40 hours aweek.
Earlier this month, Acosta told lawmakers at a budget hearing that he would be seeking more input on the rule, whichwas finalized last year by the Obama administration. The labor secretary also hinted during his confirmation hearing in March that it was unfortunate that the rule had not been updated in more than 10 years because life does “becomemore expensive.”
But he also said that doubling the threshold could “create a stress” on businesses by raising costs.
Supporters of the rule say the higher income threshold could lead to higherwagesorgiveworkers more free time to focus on their families, education or other goals.
But the rule has also faced opposition from business groups who say the new threshold raises employment costs and may force them to cut back on someworkers’ hours. A federal judge blocked the Labor Department from enforcing the regulation last November after a collection of states and business groups filed a lawsuit challenging the rule.
Some employers have already made changes to help them comply with the rule, such as increasing workers’ salaries and adjusting employees’ schedules. Others are waiting to see what happens to the rule before making any final decisions.
The Labor Department also proposed to delay until December a rule that would require companies to electronically report injuries and illnesses. The change comes as the Trump administration has scaled back on the amount of enforcement information and other data that is easily available online.