New Overtime Laws Might Not Go Into Effect Under Trump

President-Elect Donald Trump has made it very clear that he will repeal numerous orders and laws implemented by President Barack Obama when he takes office, and one such law may be the new federal overtime regulations that were set to go into effect on December 1, 2016. The implementation was delayed due to an injunction by a federal judge, noting that the new laws could not go into effect until a final decision was given by the Fifth Circuit Court of Appeals.

This has many people doubting that the law will even ever be implemented because of the upcoming change in Presidential administrations. Many people believe that President-Elect Trump agrees with the injunction, being a businessman himself and no-doubt taking a pro-business stance on the issue. Since the new regulations would require companies to either downsize their staffing numbers, cutting hours to save money, or be prepared to take a huge hit in profits, it seems likely that President-Elect Trump would like to find a way to make this new law disappear.

What Would the New Overtime Laws Change?

The new overtime regulations made one small change with sweeping consequences: raising the minimum overtime salary threshold to $47,500 . This floor is the minimum amount an employee must make before they are allowed to recover overtime pay. Any workers who make less than this amount annually must be paid overtime for every hour they work over 40 per week. Any who are “exempt” do not have to be paid overtime, even if they work more than the 40-hour threshold.

The floor changes depending on a number of circumstances, but some people can be declared as “exempt” making as little as $23,660.

Because payroll costs would likely rise dramatically, businesses would likely have to either raise salaries to meet the new threshold and avoid paying overtime, make changes to other compensation (i.e. time off, bonuses, etc.), downsize their staff to compensate for increased labor costs, or even reduce working hours to eliminate overtime altogether.

Have you been cheated out of overtime pay by your employer or been improperly compensated for your services? Call Mazaheri Law Firm now and let us assist you with reviewing your legal options! Our skilled lawyers may be able to assist you with pursuing compensation for your missed wages and other benefits due to employer mistake or unethical conduct. We can assist you with legal issues including misclassifications, minimum wage violations, unpaid overtime, and more!

Call Mazaheri Law Firm today at 405-414-2222 to schedule your consultation!