As the Big “I” pursues legal action challenging the Department of Labor (DOL) overtime rule, year-end congressional efforts to delay or phase in the overtime rule are also ramping up.

The association is concerned that the DOL rule will negatively impact independent agencies and their clients. Scheduled to take effect Dec. 1, the rule raises the monetary threshold at which employees can qualify for “white-collar” exemptions—meaning they do not require overtime pay—by 100%, from $23,660 to $47,476. The threshold will also automatically update every three years.

Just before Congress left town ahead of the election, the U.S. House of Representatives passed the Big “I”-supported H.R. 6094, the “Regulatory Relief for Small Businesses, Schools, and Nonprofits Act,” by Rep. Tim Walberg (R-Michigan). The bill would delay implementation of the overtime rule until June 1, 2017. Sen. James Lankford (R-Oklahoma) introduced identical legislation in the U.S. Senate, S. 3462; however, the Senate has not taken action, and President Obama said he would veto the legislation if it passes. 

Before the pre-election recess, Sen. Lamar Alexander (R-Tennessee), Chairman of the Senate Committee on Health, Education, Labor and Pensions, introduced another bill that would phase in implementation of the rule: S. 3464, the “Overtime Reform and Review Act.” The bill would phase in the DOL’s new salary threshold in four stages, starting with a substantial salary threshold increase to approximately $36,000 on Dec. 1, followed by a “pause year” in 2017 to allow employers to review and adjust to the changes of this new rule. Further increases to the salary level would occur annually thereafter, until reaching the final rule’s new threshold of $47,476 on Dec. 1, 2020. Especially important to Big “I” members, the bill prohibits the rule’s automatic increases to the salary threshold.

The “Overtime Reform and Review Act” is similar to legislation Rep. Kurt Schrader (D-Oregon) introduced in the House: H.R. 5813, the “Overtime Reform and Enhancement Act.” The Big “I” sent a letter in support of S. 3464 this week, and previously sent a letter in support of H.R. 5813. The association is also advocating for legislative fixes to the rule as part of the Partnership to Protect Workplace Opportunity.

While Congress contemplates multiple bills before the end of the year, the threat of a presidential veto and a packed post-election agenda mean any related efforts face an uphill battle. Also, the timing of any court decision that could delay or change the rule is uncertain. As such, Big “I” member agencies should still review the rule and assess its potential impacts on agency employees in preparation for the Dec. 1 deadline.

The Big “I” offers a resource page on the overtime rule, featuring a recently updated FAQ, sample job descriptions and explanatory materials on the Fair Labor Standards Act and employee classification. Members must log in to view the page.

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