10/31/2017

DOL to Continue Court Battle on Obama Overtime Rule

The agency wants the Obama administration’s overtime rule to be stayed while it crafts a new rule

The Labor Department will file an appeal requesting that a judge’s order to shoot down the Obama administration’s overtime rule be stayed while the DOL considers a new rule, sources familiar with the litigation told Bloomberg Law.

The appeal and motion to stay, a surprise move which sources said will be filed by Oct. 30, would allow the DOL to proceed with a new proposal that sets a different salary threshold for overtime eligibility than the one issued in 2016. The DOL is likely to eventually issue a new rule and ask the appellate court to drop the case as moot.

The Obama rule was estimated to make some 4 million workers newly eligible for overtime pay, and was one of the previous administration’s top wage growth priorities. Critics said the new salary level was too high, too fast and would force businesses to cut jobs to meet higher payroll costs.

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