House Moves to Delay Overtime Rule

Yesterday, in a 246-177 vote, the U.S. House of Representatives passed H.R. 6094, the “Regulatory Relief for Small Businesses, Schools, and Nonprofits Act,” by Rep. Tim Walberg (R-Michigan).

The Big “I”-supported legislation seeks to delay implementation of the Department of Labor (DOL) overtime rule for six months until June 1, 2017. However, it is unclear whether the U.S. Senate will take similar action to delay the rule—currently set to take effect Dec. 1, 2016, barring further legislative action or an injunction.

In addition to supporting legislation to help mitigate the negative impacts of the overtime rule, the Big “I” is also pursuing legal action against the DOL in a lawsuit filed earlier this month.

The DOL overtime rule will have a significant impact on many Big “I” agencies and their business clients. In short, the rule raises the monetary threshold from $23,660 to $47,476 for classifying employees as exempt—meaning they do not require overtime pay—under the administrative, executive, professional or computer “white-collar” exemptions. The rule also raises the threshold from $100,000 to $134,004 for classifying an employee as a “highly compensated employee” who is not entitled to overtime pay.

Starting in 2020, both thresholds will automatically update every three years. That year, the thresholds are expected to reach $51,168 and $147,524, respectively.

While the Big “I” is pursuing efforts to delay the rule by legal or legislative means, member agencies should review the rule and assess its potential impacts on agency employees prior to Dec. 1.

The Big “I” provides an overtime rule resource page to help members understand the implications of the rule. The resources page includes answers to FAQs, sample job descriptions, and explanatory materials on the Fair Labor Standards Act and employee classification, among other materials. Members must log in to view the page.

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