Stop Dramatic Changes to Overtime RegsJune 29, 2016
Senate and House Republicans are working to shut down an effort by the Obama Administration to raise the overtime pay for millions of workers. On May 18, the U.S. Department of Labor (DOL) issued the final version of a overtime exemption rule, raising the minimum salary threshold required to qualify for the Fair Labor Standards Act’s (FLSA’s) “white collar” exemption to $47,476 per year, which will automatically extend overtime pay to more than four million workers within the first year of implementation.
Under the existing rule, which has been in effect since 2004, employees must be paid a minimum salary of $455 per week ($23,600 annually) to qualify for the “EAP” – executive, administrative, professional – exemptions from the FLSA’s overtime requirements. Under the new final rule, the salary level will increase to $913 per week ($47,476 annually).
Now lawmakers are working to block the implementation-which is set to go into effect on Dec. 1, 2016. The chairmen of the Senate HELP Committee and the Senate Homeland Security and Governmental Affairs committee introduced legislation-S.J.Res. 34-under the Congressional Review Act (CRA) to block implementation of the administration’s overtime rule. The CRA legislation introduced by Senator Lamar Alexander (R-Tenn.) and Senator Ron Johnson (R-Wis.) would nullify the administration’s final rule if passed, and prohibit the administration from issuing a substantially similar rule without congressional approval. Similarly, in the House, Rep. Virginia Foxx (R-N.C.) filled a motion of disapproval (H.J.Res. 95) under the CRA in an effort to repeal the DOL’s new overtime rule.
NSBA is calling on all small-business owners to contact their lawmakers on how this final overtime rule would impact their small business.