Meet the bill built to stop the overtime rule changes
Senate and House Republicans want the Obama administration to do a little more research before pushing through its changes to the FLSA’s white-collar overtime exemption regulations.
Legislation has been introduced in both branches of Congress to put a stop to the DOL’s final rule on the overtime exemptions, which was just submitted to the White House’s Office of Management and Budget for review — the final step before the rule is made pubic with an effective date.
The bill is called the Protecting Workplace Advancement and Opportunity Act. It would require the DOL to conduct a comprehensive economic analysis on the effect the overtime reg changes would have on small businesses, nonprofits and public employers before it’s officially on the books.
If passed, the bill could potentially accomplish two other things:
- It could push the DOL’s final rule far enough into the future that it would be at the mercy of the next Congress and president. As you may recall, the Congressional Review Act says that if a major rule is submitted to Congress with fewer than 60 legislative session days on its calendar, the next Congress gets 60-days to consider the rule.
- It creates a vehicle through which members of the GOP can distance themselves from the DOL’s rule through an official vote. Thus, it’ll give them a chance to publicly say “I told you so” to Democratic lawmakers should the rule be a disaster.
The bill was introduced in the House by Tim Walberg (R-MI) and in the Senate by Tim Scott (R-SC).
In comments released by the House’s Committee on Education and the Workforce, Walberg said:
“In the 21st century workplace, we need to encourage policies that increase flexibility, reduce regulatory burdens, and create more opportunities for workers to pursue their dreams. Our nation’s outdated overtime rules are in need of modernization, but it must be done in a responsible way that doesn’t stifle opportunities for working families to get ahead. Unfortunately, the administration’s overtime proposal fails this test and should be sent back to the drawing board.”
Scott was then quoted as saying:
“The Obama administration’s decision to drastically redefine overtime will hurt our workforce and our employers. It will lead to reduced hours, confusion for job creators, and will limit growth opportunities for employees. It is important that workplace policies address the needs of both employees and employers. The Protecting Workplace Advancement and Opportunity Act stops the Department of Labor from irresponsibly redefining the overtime threshold without understanding the real world consequences. It will also require them to start over and ensure that any new regulation on overtime considers the daily impact on our nation’s economy.”
The Protecting Workplace Advancement and Opportunity Act would also:
- Require that any changes to the duties tests be made available for public review and comment before being made into law. If you recall, the DOL’s proposed rule contained no changes to the duties tests, but asked for public comments on whether the current tests were working. So it’s possible that the agency’s final rule contains changes to the duties tests based on those comments.
- Prevent the exempt salary threshold from automatically increasing.
