Business groups are complaining Obama administration had raised the minimum annual salary threshold way too high for overtime!
In a new court filing, President Trump wants to cover more federal workers with overtime by lowering the minimal salary threshold.
Washington Examiner reported:
“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.
That put the legal defense of the rule in the hands of the Trump administration, raising the question of what it would do. During his Senate confirmation hearing in May, Labor Secretary Alexander Acosta said the overtime rule was due for an update but the Obama administration had raised the minimum too high.
That’s precisely what Justice Department lawyers argued in a court filing Friday. They defended the prior administration from charges that it violated the Administrative Procedures Act, which covers federal rulemakings, but also said the current administration would rethink the rule.
Business groups applauded the move. “It’s great to see a Department of Labor finally taking the time to fully evaluate the impact its regulations will have on businesses. Secretary Acosta has once again proven he is a thoughtful leader who will work in the best interest of the American worker,” said Angelo Amador, executive director of the Restaurant Law Center, part of the National Restaurant Association.”
Do you support Trump administration’s move?