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Labor Department begins process to revise controversial overtime rule


July 26, 2017
Originally Posted on Greater Baton Rouge Business Report

The Labor Department today begins the process of rewriting a controversial Obama administration rule that made 4.2 million more U.S. workers eligible for overtime pay.

The Wall Street Journal reports the department is soliciting public comments on the rule, which drew ire from businesses organizations like the Louisiana Association of Business and Industry.

The rule never took effect. A federal court stopped implementation in December in response to a lawsuit filed by states and businesses, leaving the regulation in limbo.

The Labor Department says it is specifically seeking feedback on the appropriate salary level under which most workers are automatically eligible for overtime pay, whether that level should be increased on a regular schedule, and on the test to determine eligibility for a worker earning more than that amount.

Finalized last year, the rule sought to raise the threshold salary under which most workers are required to receive overtime pay to $47,476 from $23,660. The rule was expected to make an estimated 61,000 Louisiana workers available for overtime pay.  

The Wall Street Journal has the full story (subscription may be required). Also, check out a recent Business Report feature about how local human resource departments sought to comply with the rule.