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Regulations, Business and Insurance

Posted By Administration, Tuesday, August 1, 2017

Just before leaving office President Obama’s administration changed the nation’s overtime rules and extended mandatory overtime pay to 4.2 million workers it said were not being treated fairly. It was blocked by a federal judge in December of last year.

Opponents — 21 states and the U.S. Chamber of Commerce — told the judge it would force many salaried employees to become hourly employees as it doubled the maximum salary — to $47,000 — that a worker can earn and be eligible for mandatory overtime pay.

The U.S. Department of Labor appealed and has now decided to take comments on the rule. However, it also made it clear that it does not agree with the new threshold set by the Obama administration. The department wonders if the $23,660 amount put into place in 2004 needs to be updated. Inflation could be considered as could employer size, industry and other factors.

The appeal by the Trump administration and the Labor Department’s noting that it does not agree with the Obama rule has ticked off labor groups. One group — the National Employment Law Project, a union-backed organization — said the Obama administration took 300,000 comments before setting the threshold at $47,000.

In another regulatory matter, the U.S. House of Representatives has voted to drop a new rule issued by the Consumer Financial Protection Bureau (CFPB) that lets the customers of banks and credit cards to sue in groups if they feel they are mistreated.

Current rules allow banks and credit card companies to put language into contracts that forbid consumers from filing suit and forces them into negotiation and arbitration if there is a disagreement.

The vote 231 to 190 was strictly along party lines.

The vote was taken under the Congressional Review Act which allows both the House and Senate to repeal rules with simple majorities. The Senate has yet to act but a similar vote is being considered.

Source links: Insurance Journal — link 1, link 2

Tags:  Business and Insurance  Insurance Content  Insurance Industry  Insurance News  Regulations  Weekly Industry News 

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