The move marks the largest expansion in federal overtime eligibility seen in decades. Critics said the regulation could saddle companies with new costs and add to persistent labor challenges.
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It’s been more than six months since the U.S. Department of Labor announced a proposed new rule to the Fair Labor Standards Act that would extend overtime pay to 3.6 million salaried workers. Whenever the final rule is published, it’s expected to spur immediate legal challenges.
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On Nov. 15, a federal judge in Texas blocked a new rule from the Biden administration that would have expanded access to overtime pay to millions more salaried workers across the U.S.
The proposed rule would have the biggest impact on retail, food, hospitality, manufacturing and other industries where many managerial employees meet the new pay threshold.
The practice, often deployed by retail and restaurant companies, takes advantage of the Fair Labor Standards Act, which exempts firms from paying overtime wages if the employee is a manager and gets paid a salary above a certain threshold.
Two former employees of Anthem Inc. claim the Indianapolis-based health insurer set work quotas so high that it was impossible to meet them in a 40-hour week, forcing them to work unpaid overtime. Anthem declined to comment.
The Trump administration has issued a rule that will make overtime pay available to 1.3 million additional workers, far fewer than a proposal that had been advanced by former President Barack Obama but struck down in court.
A federal court on Tuesday blocked implementation of a rule imposed by President Barack Obama's administration that would have made an estimated 4 million more higher-earning workers across the country eligible for overtime pay.
The states sued the U.S. Department of Labor on Tuesday over a new rule that would make about 4 million higher-earning workers eligible for overtime pay, slamming the measure as inappropriate federal overreach by the Obama Administration.
An estimated 87,000 Hoosier workers will be affected by the change, which means companies could be making significant workforce investments as they weigh expensive compliance choices.
