Thanks to Trump, millions of workers may lose their overtime pay

President Donald Trump could unilaterally decide whether or not more Americans should qualify for overtime compensation.

In 2016, former President Barack Obama put in place new rules for workers qualifying for overtime pay. Prior to the Obama rule, workers would only qualify for time-and-a-half compensation if they made $23,660 or less per year. Under the Fair Labor Standards Act, workers who perform managerial duties are exempt from time-and-a-half pay rules — this is more commonly known as the “white-collar exemption.”

However, Obama expanded the existing overtime rules so that anyone earning $47,476 or less would qualify for extra compensation if they put in more than 40 hours of weekly work for their employers, regardless of whether or not those workers had “manager” or another special administrative role spelled out in their official job title. Reuters reported that the Obama rule would affect roughly 4.2 million workers.

Currently, the Obama administration’s new rules on overtime pay are held up in court, and their fate could rest on whether or not Obama’s successor in the White House decides to fight for them to be officially on the books, or let them die in the judicial branch. U.S. District Judge Amos Mazzant held up the overtime rule by stating that the U.S. Department of Labor wasn’t in a position to unilaterally decide which workers qualify for overtime compensation based on salary alone.

As it stands now, President Trump will likely allow the courts to kill the ruling, calling it one example of burdensome regulations on business he seeks to overturn.

“We have to address the issues of over-taxation and over-regulation and the lack of access to credit markets to get our small business owners thriving again. Rolling back the overtime regulation is just one example of the many regulations that need to be addressed to do that,” Trump said in an interview with Circa News.

 

Tom Cahill is a writer for the Resistance Report based in the Pacific Northwest. He specializes in coverage of political, economic, and environmental news. You can contact him via email at [email protected], or follow him on Facebook