DOL to appeal court's decision to dump overtime rule

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President Donald Trump's administration will attempt to revisit an Obama-era law on overtime pay, the Department of Labor announced Monday.

The final pay rule, which was published in May 2016, raised concerns among long-term care providers who feared the financial hit they could take with more employees becoming eligible for overtime. An estimated 4.2 million workers would have become eligible for overtime under the rule, which would have raised the salary threshold from $23,660 to $47,476. The salary update was later stopped by a court injunction.

The DOL announced in early August that it would give up the fight to enact the law in favor of creating its own rule. The Obama-era law was soon after deemed unlawful by a judge.

An update posted on Monday shows the department plans to appeal that decision, and have the appeal put on hold while it “undertakes further rulemaking to determine what the salary level should be.” The DOL is also reviewing public comments submitted this summer on possible changes to the rule that could be proposed later on.

A spokesperson for the U.S. Chamber of Commerce, which sued over the rule, said in a statement to Law.com that the group hopes the new administration proposes a less drastic raise to the salary threshold than the one included in the Obama administration's rule.

“We continue to believe the last administration went too far in its 2016 overtime rule, and have urged the department to issue a responsible update to the salary level,” the statement reads. “As necessary, we will defend the district court's opinion, which correctly struck down a rule that would have been disruptive to employers across the spectrum.”

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