Compliance Corner: Trump Administration Reviewing Overtime Pay Requirements

One of the cornerstones of the Obama Administration’s labor agenda was a multi-year push to expand the number of employees who are required to receive overtime pay (1.5 times the regular rate of pay) for time worked in excess of 40 hours per week. The Obama Administration’s final regulation was delayed before taking effect, and was recently struck down by a federal court. It is unlikely to ever take effect.
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One of the cornerstones of the Obama Administration’s labor agenda was a multi-year push to expand the number of employees who are required to re­ceive overtime pay (1.5 times the regu­lar rate of pay) for time worked in ex­cess of 40 hours per week. The Obama Administration’s final regulation was delayed before taking effect, and was recently struck down by a federal court. It is unlikely to ever take effect.

The Trump Administration, however, is also examining the need to update cur­rent overtime eligibility requirements with an eye toward expanding the num­ber of employees eligible for overtime pay. Although Trump’s Labor Depart­ment is unlikely to be as aggressive as the Obama Administration was (Obama proposed doubling the overtime salary threshold from approximately $23,000 per year to approximately $47,000 per year, with sporadic updates for infla­tion), it is reasonable to expect some type of update in the coming months....