Overtime law in limbo; C.O. employers await outcome

A change in federal law that would expand overtime pay for millions of Americans was blocked by a federal judge last week, and might not survive. About 4 million Americans were set to gain eligibility for overtime pay under the law, which would have taken effect Thursday.

In anticipation of the law, businesses spent months preparing for the shift. And while some employers might be happy about fewer employees earning overtime, businesses also might be a little upset at all the resources they spent preparing for it.

“It was a colossal waste on the U.S. Department of Labor, who spent thousands of dollars and received over 300,000 public comments now,” said Katherine Tank, a Bend labor and employment attorney. “With the rule being stopped, that’s a lot of public resources.”

One of the likely reasons the law was blocked is the major shift that would have happened all at once. It would have doubled the annual salary threshold to qualify for overtime pay from $23,660 to $47,476.

“There’s probably some movement that could’ve happened there, but you just don’t immediately increase it by 100% or 120 percent overnight,” said Economic Development for Central Oregon Executive Director Roger Lee. “So there’s probably some work that could be done there, but there’s certainly not been much communication, I think, on the part of employers about this that may be impacted.”

In the next few months, the Trump administration will appoint and seek Senate confirmation of a new labor secretary. And if the current administration’s Labor Department appeals the decision to strike down the law, it will be up to the new president and labor secretary to decide whether to continue with that appeal.