The past few months have been a roller coaster ride as far as the Department of Labor’s new overtime exemption rule change is concerned. On December 1, 2016, the Department of Labor was set to issue a new overtime law, but before it could take effect, a federal judge in Texas invalidated it. The Obama administration filed an appeal with the Fifth Circuit Court of Appeals before leaving the White House to get the invalidation of the rule by the Texas District Court judge overturned.
But now employees across the country are starting to wonder: What will the Trump administration do about the overtime rule?
Under the Department of Labor’s overtime exemption rule change, nearly four million more American workers would have become eligible for overtime compensation. But businesses and industry have voiced concerns that the rule change would cost too much, and that it could force them to downsize. As a result, people would be put out of work.
New Overtime Law: Possibilities Under the Trump Administration
Court Filing Could Be First Step for Blocking Overtime Law Change
If the first few weeks of Trump’s presidency are any indication of the changes to come, it is entirely possible that Trump could make good on his campaign promise to overhaul federal regulations, such as the new overtime rule. It appears that the Trump administration has taken its first step in trying to block expansion of overtime laws by filing an extension of time with the Fifth Circuit Court of Appeals, according to the Washington Examiner. If the Trump administration can convince the Fifth Circuit Court of Appeals to drop the case, then the administration will have the opportunity to decide what to do next.
If the case is successfully dismissed by the Fifth Circuit, then Trump will have two options on how to proceed. The new administration could either propose to rescind the expansion of the overtime rule and then formally publish a final rule rescinding the expansion of overtime rule, or alternatively, it could propose to replace the overtime expansion rule with new regulation.
Outcome Likely Not in Favor of Employees
Regardless of which approach the Trump administration takes concerning rescinding, revising or replacing the overtime rule going forward, there is a good likelihood that the outcome will not be favorable to individual employees. While President Trump made many promises about creating new jobs and bringing jobs back to America, he also made it clear that he is a supporter of business. Some appointments to the Trump administration in various cabinet and leadership positions also suggest that any progress made concerning the overtime rule will benefit businesses.
Many California employees are waiting with bated breath to see what President Trump has in store for them concerning federal overtime regulations. If you need help with any overtime and employment issues in California, do not hesitate to contact one of our experienced California employment lawyers at Hennig Ruiz for a free consultation about your particular situation today.