Obama's Overtime Law Was Overturned, But Still Helped Thousands

[SunSeeker]

Although a federal judge in late November blocked an update to the Fair Labor Standards Act that would have greatly increased the number of workers eligible for overtime pay beginning at the start of this month, there are indications that the rule still has benefitted some of the workers it was intended to help — and could continue to do so even if Donald Trump squashes it after taking office.

The new legislation would have significantly raised the salary cap under which employees workers were eligible to earn overtime pay. In response, some large companies, such as Walmart, gave raises to workers whose pay fell just under the new threshold, making them ineligible for overtime pay. Other companies reclassified salaried overtime-exempt workers as hourly employees, which would make them eligible to earn overtime for workweeks longer than 40 hours.
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"There's a whole set of companies that had already communicated to their employees that they were going to change their employment status or give them raises," said Brian Kropp, HR practice leader at CEB. Because the rule was halted only about a week before it was set to take effect, many companies had already made the switch.
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Those raises could have more staying power than the legislation itself. Ross Eisenbrey, vice president at the Economic Policy Institute, said it isn't clear yet whether or not the rule and the higher overtime threshold will survive after the inauguration. Donald Trump's stated opposition to corporate regulations makes him unlikely to support defending it in court, although Eisenbray said at least one organized labor group is positioning itself to continue defending it even if a Jeff Sessions-led Department of Justice declines to do so.

This ambiguity around the legislation's fate could prompt companies to take a better-safe-than-sorry approach, Eisenbray said, since it would be hugely expensive to have to pay months of overtime retroactively.

http://www.nbcnews.com/business/economy/obama-s-overtime-law-failed-still-helped-thousands-n700121