Obama Overtime Rule Suffers Setback

After suffering a surprising presidential election defeat, the Obama administration now faces reversal of one of his signature labor deals.

This week a federal judge overturned the administration’s overtime law that would have expanded overtime pay to 4 million Americans.  The rule would have increased the overtime threshold to $47,476 from $23,660.

Administration prospects for overturning the ruling are slim, considering that President-elect Donald Trump has signaled his desire to reverse the Obama initiative.  If the decision is appealed it will go before one of the most conservative appellate courts in the country, the federal 5th Circuit Court of Appeals.

The Department of Labor issued a statement shortly after the injunction, saying:

“The Department strongly disagrees with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The Department’s Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”

While this is a clear setback for the outgoing President, it was hailed as a strong move in the right direction by small business advocacy groups around the country. President-elect Trump has yet to comment on the ruling.

Dumas Law Group has law offices in Portland, Oregon and serves clients in Oregon, Washington, California, and other states.

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