The Labor Department is formally requesting feedback on a rule that would expand overtime pay to millions of workers—a sign that the Trump administration could move to scale it back.
The Washington Post reports Labor Secretary Alexander Acosta previously said he planned to review the pending regulation, which would more than double the income threshold that determines which workers should be eligible for overtime pay.
The rule would increase the threshold to about  $47,500 a year, from the current level of $23,660 a year. Workers earning less than that income qualify to earn one and a half times their pay for any hours worked beyond 40 hours a week.
Business groups, including the Louisiana Association of Business and Industry, have come out in opposition of the rule, which was supposed to take effect Dec. 1. An estimated 61,000 Louisiana would be impacted.
However, a federal judge in November temporarily blocked the rule’s implementation, saying former President Barack Obama’s administration had exceeded its authority by raising the overtime salary limit so significantly.
Earlier this month, Acosta told lawmakers at a budget hearing that he would seek more input on the rule, which was finalized last year by the Obama administration. The labor secretary also hinted during his confirmation hearing in March that it was unfortunate that the rule had not been updated in more than 10 years because life does “become more expensive.” But he also said that doubling the threshold could “create a stress” on businesses by raising costs.
Supporters of the rule say the higher income threshold could lead to higher wages or give workers more free time to focus on their families, education or other goals.
Read a recent Business Report feature about how human resources departments were adjusting to comply with the rule.
