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Expected Labor and Employment Law Rollbacks Under Trump

By George Khoury, Esq. | Last updated on

While President Barrack Obama was intent on expanding civil rights and pro-employee labor laws, President-elect Donald Trump is expected to be pro-business. As such, many expect Trump to rollback a significant number of the labor and employment law changes made by the Obama Administration, and to take a step further by implementing more pro-business policies.

While campaigning, Trump was rather vocal about repealing the Affordable Care Act. Additionally, the new overtime regulations slated to go into effect may be a prime target for an early Trump executive order. Although Trump already has a reputation for flip-flopping his position on important issues, most expect that he will consistently implement policies that generally benefit big businesses.

Affordable Care Act on the Chopping Block

The Affordable Care Act requires employers of 50 or more employees to offer their employees, who work 30 or more hours per week, health care coverage or face a financial penalty for each worker not covered. Trump, while campaigning, promised his supporters that he would get rid of Obamacare. However, now that Trump has been elected, he has walked back his statement a little bit.

Now, Trump asserts that parts of the ACA, like insurance companies not being able to deny coverage for pre-existing conditions, may be saved. It is likely to see that Trump will only make changes that benefit businesses, such as removing the penalty for employer non-compliance, and loosening requirements for businesses.

Overtime Rules for White Collar Employees

The rules for paying overtime were changed by President Obama in an executive order in 2014. However, the rule change, slated to go into effect this December, is on hold due to a Texas Federal Court order. Obama raised the minimum pay threshold for white collar employees to be properly considered exempt from the overtime rules from $23K per year to about $50K per year.

The change is expected to be costly for employers both small and large, as salaried employees that make less than the new threshold would become eligible for overtime. Commentators have speculated that Trump may decide to give up on the overtime rules entirely.

Other Possible Rollbacks

Trump's administration could also significantly impact union election rules, arbitration agreements, and the Fair Pay and Safe Workplaces Order.

But the possible rollbacks are almost endless, given Trump's determination to decrease regulations. Forbes has specified that there are 140 Obama regulations that Trump and the 115th Congress could eliminate.

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