Dive Brief:
- The Department of Labor filed an intent to appeal a federal judge's injunction of the overtime rule in New Orleans, the Fifth U.S. Circuit Court of Appeals. This was an expected move under the Obama administration.
- This ruling is not likely to see resolution until after President-elect Trump takes office.
- Championed by President Obama's administration, the rule stated that employers must pay overtime to any workers whose salaries fell under $47,476 a year. It was set to go into effect on Dec. 1.
Dive Insight:
After having months to prepare and in some cases already increasing employees' pay, companies remain in limbo. But those opposed to the increase have reason to be optimistic. This initiative was considered to be key to Obama's legacy. And, while there is no official stance from Trump, it is safe to say his administration will work to undo the new regulations.
Trump's choices to become labor secretary are not likely to champion a pay increase that many businesses and state and local governments have branded as harmful and detrimental. Also, before taking office, Trump has managed to work with Carrier to save jobs. Keeping the overtime rule in tact is a threat to future jobs, according to some employers.
