House Bill May Delay Implementation of New Overtime Rules

The House has cleared the way for a floor vote as early as today on legislation that would delay implementation of new Department of Labor rules governing overtime pay currently scheduled to take effect on December 1.

The Regulatory Relief for Small Businesses, Schools, and Nonprofits Act (H.R. 6094) introduced by Rep. Tim Walberg (R-MI) would delay implementation for six months, until June 1, 2017, in an effort to readdress the issue with a new Administration next year.

The measure is smaller in scale than the Overtime Reform and Enhancement Act (H.R. 5813) introduced by Rep. Kurt Schrader (D-OR) that would phase-in the increased salary threshold over three years, and eliminate the automatic threshold increases every subsequent three years.

DOL released updates to the overtime rules in May, and among other provisions, the new rules will increase the salary threshold under which employees are eligible for overtime pay from $23,660 to $47,476 per year, or from $455 to $913 per week, indexed every three years.

While Walberg’s bill is expected to pass in the House, the legislation faces a much tougher road in the Senate and a near-certain veto by President Obama if passed by both chambers.

Source: Bloomberg BNA

Types: Blog
Global Topics: Congress, Public Policy