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Labor Dept Asks Court for Abeyance on Obama Overtime Rule

Image: Labor Dept Asks Court for Abeyance on Obama Overtime Rule
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By    |   Tuesday, 31 October 2017 03:10 PM

The Department of Labor has asked the court to grant an abeyance in the case of a controversial Obama administration rule substantially changing the overtime threshold for white-collar workers so that it will have time to reconsider the proposal, The Washington Free Beacon reported on Tuesday.

The Labor Department hopes that by altering the Obama plan, which was blocked by a federal judge last November, it will retain its power to regulate overtime rules by setting a more modest salary threshold.

"We are asking the court to stay the appeal, because the department is in the process of reconsidering the rule," a Labor Department spokesman said. "We are asking the court to respect the department's authority to set the rule."

President Barack Obama attempted to raise the minimum threshold from $455 per week to $913 at which employers must pay overtime, as well as establish automatic annual increases in the rate. This would substantially increase the cost of the total overtime costs and spurred legal challenges from state governments and industry groups.

After a federal judge blocked the plan, the Obama administration appealed the decision. Although the Trump administration previously said it would no longer defend the proposal, the Labor Department reversed that decision and said it will appeal the federal court decision, according to the Washington Examiner.

However, the Trump administration is still expected to significantly scale back the rule and in July it asked for public comment from employers, unions, and others to debate the new minimum overtime threshold. The Labor Department said it received more than 100,000 comments and is currently reviewing them.

The Trump administration intends to drop the appeal if it manages to set a new regulation that is more agreeable to employers.

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The Department of Labor has asked the court to grant an abeyance in the case of a controversial Obama administration rule substantially changing the overtime threshold for white-collar workers so that it will have time to reconsider the proposal, The Washington Free Beacon...
labor department, asks, court, abeyance, barack obama, overtime rule
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2017-10-31
Tuesday, 31 October 2017 03:10 PM
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