Trump’s Labor Department Wants Salary Level to Determine Overtime Eligibility

Recently, the Labor Department filed a brief in federal court challenging whether the Obama administration had the right to double the threshold for the maximum pay a worker can receive and still qualify for overtime. Employees who earn less than the threshold maximum salary are eligible for time-and-a-half. The Obama administration fought to double the maximum salary threshold from $24,000 to around $47,000. This would have meant that those earning less than $47,000 would be eligible for time-and-a-half if they work more than 40 hours a week. This would have resulted in four million more Americans being eligible for overtime pay.

However, last year, a federal court blocked the Obama administration’s rule. Now Trump’s Labor Department has said that it wants salary levels to count in deciding who is eligible for overtime, but it continues to hold off on the maximum pay workers can earn and still qualify for overtime. The Department expressly asked the court not to address the specific salary level set by the 2016 final rule. The Trump administration only requested a ruling on whether the department has statutory authority to set a salary level at all.

Some critics have argued that anything lower than the $47,000 suggested by Obama would adversely affect minority workers. When the Obama administration issued the rule in May of 2016, the Labor Department said that it would go a long way toward ensuring that every worker is compensated for their hard work. Supporters argue that many employees do not even realize that they are eligible for overtime pay.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green Advocate for Victims of Unpaid Overtime 

Certain employees who work more than 40 hours a week are eligible for time-and-a-half. If you have only been paid regular wages for overtime hours, you may be entitled to additional compensation. To discuss your case with a skilled Philadelphia employment lawyer at Sidkoff, Pincus & Green, call us today at 215-574-0600 or contact us online.