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Obama administration seeks to revive overtime pay rule

HomeEmployer/Employee IssuesObama administration seeks to revive overtime pay rule

Yet again, a move as expected from the Obama administration has been witnessed. The administration asked a federal appeals court to review a recent decision. This decision was blocking a rule. This rule inculcated norms that would ensure mandatory overtime pay to almost 4.2 million US workers.

This has been seen as an initiative to boost wages by the Obama Government. The U.S. Department of Labor has filed a notice of appeal in federal court of Sherman, Texas.

What has it asked?

It has asked the 5th U.S. Circuit Court of Appeals to overturn the decision portrayed on November 22. It was back then, that the U.S. Judge Amos Mazzant, in Texas issued a primary injunction, which blocked the rule.

With the Fifth U.S. Circuit Court of Appeals in New Orleans, the Labor Secretary Thomas Perez and other departmental officials have filed a notice of appeal. This has been witnessed as a move to defend an Obama administration rule.

New Rule

This rule, inculcates the requisite by the employers to start paying overtime to the workers which are earning salaries less than $47,476 in a year.

The current threshold which was last updated in 2004 was $23,660. Hence, the new threshold is definitely too much for the business community and the states. So, in accordance with the business community, the Government is basically overstepping its authority.

The large and small employers that had already made some of the adjustments will find it really tedious to reverse some of the alterations.

It will be interesting to see, what is pursued by the President-Elect Donald Trump. This is because he had said earlier that he would be rolling back business regulation he thinks is capable of doing business harm.

Source link:- http://www.reuters.com/article/employment-overtime-idUSL1N1DW1WC

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