Corporate Services, Inc.
208 Kishwaukee St. · Rockford, IL 61104
(p) (815) 962-8367 · (f) (815) 962-0940

Why the Fight Over DOL's Overtime Rule Could Rage On... For a While


The U.S. Department of Labor's (DOL) overtime rule is not dead yet. In fact, it has a big ally.

The nation's largest union federation, the AFL-CIO, just reminded the Trump administration that it plans to fight any attempts to overhaul the changes the Obama administration put in place. Specifically, the AFL-CIO plans to sue the Trump-run DOL if it "dilutes" the final overtime rule that was slated to take effect in December of 2016.

What does the federation consider a dilution of the overtime rule? AFL-CIO President Richard Trumka says any changes by the Trump administration that attempt to lower the salary threshold under the Obama-era rule will lead to legal action by the federation.

On top of the threat of legal action, the AFL-CIO said it plans to defend the overtime changes in court (the regulations are currently on hold as a result of a court injunction).

Trumka believes taking the overtime expansion away from even one applicable worker could have devastating effects and said, "anything that dilutes it [the DOL's new overtime regulations] is bad."

More changes coming?

Employers also recently got a glimpse of Alexander Acosta's (President Trump's DOL nominee) feelings toward the DOL's overtime changes. During his DOL secretary confirmation hearing, despite attempts to dodge queries about whether the Trump administration would defend the overtime rule in court, Acosta did seem to at least indicate that he feels there are problems with the salary threshold of the Fair Labor Standards Act (FLSA) under the old overtime rules. He said it was unfortunate the threshold had not been updated since 2004, saying:

We now see an update that is a very large revision and something that needs to be considered is the impact it has on the economy, on nonprofits, on geographic areas that have lower wages. But I'm also very sensitive to the fact that it has not been updated since 2004 and if confirmed, I will look at this very closely.

However, Acosta did say doubling the amount would not only create "a stress on the system," it might also overstep the DOL's legal authority.

Legal experts seem to surmise that Acosta's comment hints at increasing the salary threshold to somewhere between the amount set by President George W. Bush in 2004 and the increase finalized by President Obama in 2016.

If that is the case, Acosta could still face legal action from the AFL-CIO.

Posted In: Fair Labor Standards Act (FLSA); Department of Labor (DOL); Executive Branch

Want to know more? Read the full article by Jared Bilski at HR Morning

More News from Corporate Services, Inc.

Letter 226J? IRS's New ACA Enforcement Comes at a Terrible Time

Human resources professionals can be forgiven if they are a bit skeptical about the warnings from the Internal Revenue Service (IRS) to collect employer mandate penalties under the Affordable Care Act (ACA), largely due to the agency's apparent lack of follow-through. However, with the latest warning, the agency now includes some proof that this time it is for real.more

Tricky Human Resources Situations

With the multitude of issues human resources professionals face, it can be difficult to know under which circumstances legal assistance is necessary. Because, when it comes down to it, there is no instruction manual.more