Trump Administration Blocked Overtime Pay for Salaried Employees

Trump Administration Blocked Overtime Pay for Salaried Employees

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On the heels of the Labor Day weekend, when families barbecue and the nation appreciates laborers, the President has dropped an appeal of a ruling made by a Texas judge, effectively cutting the wages of 4 million American workers. The President of the AFL-CIO, a huge organization of American workers, said on Monday that the President had assaulted protections for American workers, this decision is yet another attack on workers, many of whom voted for Trump.

The Rule

Former President Obama instituted a rule that anyone making less than $47,000 a year is automatically eligible for overtime pay. The rule protected workers who classified as “salaried” solely to avoid overtime pay. The rule applied to people working in retail and service sectors among many others.

The rule effectively raised wages for 4.2 million American workers. The rule was opposed by conservatives and corporate interests who have an interest in protecting a companies ability to underpay employees.

The President of American Bride had this to say about the administration’s decision to drop the rule:

Donald Trump¬†personally screwed over hundreds of employees by refusing to pay their overtime, and now he’s using the Justice Department to slash the paychecks of 4 million hardworking Americans who will not receive the overtime pay that they earn. This is Trump’s latest action that is at odds with his campaign trail rhetoric, and it further shows how his economic agenda is solely designed to further rig the American economy for the rich – including Trump himself – at the expense of American workers.”

The Case

The President did not technically rescind the rule. Instead, he had the Department of Justice drop an appeal of a ruling made by a Texas judge that halted the rule. By not moving forward with the appeal, the administration is effectively rescinding the rule.

The judge struck down the rule saying it was improper for the rule to focus on the salaries of the workers as opposed to their job descriptions. Conservatives and industry lobbyists touted the decision.

The Department of Justice initially appealed the decision, providing the possibility for the rule to go into effect if the judge’s ruling was overturned on appeal. The Trump administration dropped the appeal, eliminating the possibility of the rule ever going into effect.