Labor Dept. to Appeal Ruling Nixing Overtime Rule

The U.S. Department of Labor, under the Trump administration, plans to appeal a ruling that struck down a contentious Obama-era regulation that would have extended overtime pay to an estimated 4 million people, The Hill reported. The agency on Monday filed a notice to the U.S. Court of Appeals for the 5th Circuit, but is expected to issue an appeal next week to give officials more time and flexibility to rewrite the rule.

The regulation, which was set to take effect on December 1, 2016, would have drastically changed how employers, including colleges and universities, pay and classify their workers. It would have doubled the salary threshold to $47,476 from $23,660 that determines which workers are eligible for overtime pay.

In August, a federal judge in Texas ruled that the Labor Department exceeded its authority by issuing the regulation, arguing that the agency improperly looked at salaries instead of job descriptions when determining whether a worker should be eligible for overtime pay.

In its filing this week, the department defended its authority to create the overtime rule, but not the salary limit set by the Obama administration. Critics of the rule said it raised the overtime threshold too much and too quickly.

An official said the department is hoping the court will rule the case is moot once the agency rewrites the rule and sets appropriate salary levels to qualify for overtime pay, reported the Hill.


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