Trump Administration Nears Release of New Overtime Proposal
The U.S. Department of Labor (DOL) has sent its proposed overtime rule to the Office of Information and Regulatory Affairs, an arm of the White House's Office of Management and Budget, for review. Generally, this means the regulation is close to a public unveiling and could allow it to be finished by late 2019. Specifics on the proposal have not been released by the DOL, but businesses and labor groups are carefully following developments on the rule because it could make millions more Americans eligible for overtime pay. In testimony to Congress, U.S. Labor Secretary Alexander Acosta has said he favors raising the annual salary threshold from the 2004 level of $23,660. In its 2017 request for public input on the regulation, the DOL asked whether updating that level for inflation would be an appropriate basis for setting the standard salary level, and if that were to occur, the new annual threshold would be about $32,000. If the rule is finalized later this year, it is likely to be challenged in court, potentially delaying implementation, says Heidi Shierholz, a former chief economist at the DOL who was involved in crafting the prior administration's policy.