Congress Reacts to Overtime Rule

As Big “I” agencies prepare for implementation of the Department of Labor (DOL) overtime rule, the association and others continue advocating on Capitol Hill to stem its negative impacts.

The DOL rule updates a regulation that exempts certain employees from overtime and minimum wage requirements commonly referred to as the “white-collar” exemptions. The new rule will require employers to pay overtime to many employees who were not previously entitled to it.

Yesterday, the U.S. House of Representatives Education and the Workforce Committee held a hearing, “The Administration’s Overtime Rule and its Consequences for Workers, Students, Non-Profits, and Small Businesses.” The Big “I” submitted written testimony for the hearing outlining its concerns regarding the serious consequences the DOL rule will have on many small businesses.

Earlier this week, Sens. Lamar Alexander (R-Tennessee) and Ron Johnson (R-Wisconsin) introduced S.J. Res 34, a joint resolution calling for congressional disapproval of the rule. The senators introduced the resolution under the Congressional Review Act, which allows the U.S. Senate and House to vote on a joint resolution of disapproval to stop a federal regulation. The House is expected to introduce a similar measure.

Additionally, the Big “I” supports S. 2707 and H.R. 4773, the “Protecting Workplace Advancement and Opportunity Act,” by Sens. Tim Scott (R-South Carolina) and Lamar Alexander (R-Tennessee) and Reps. Tim Walberg (R-Michigan) and John Kline (R-Minnesota). The legislation would stop the current rule and forbid DOL from re-proposing the rule unless it meets certain conditions, including protections for small businesses.

The Big “I” will continue to support legislative efforts ahead of the rule’s Dec. 1, 2016 effective date. However, any legislation that successfully passes both chambers of Congress is likely to face a presidential veto.

Jennifer Webb is Big “I” federal government affairs counsel.