House Votes to Delay Implementation of
New Overtime Rule;Obama Threatens Veto
he U.S. House of Representatives Schrader (D-Ore), a proponent of lenging the rule.
has delayed the implementation changes to the rule, voted against it.
of the Department of Labor’s In July, Schrader introduced the its authority by increasing the salary
DOL) new Overtime Rule for six Overtime Reform and Enhancement threshold and failing to account for re-
months. However, the Obama admin- Act (H.R. 5813), which would phase gional variations in the cost of living.
istration issued a statement threaten- in the new threshold over a three-year The suits also claim that the agency
ing to veto the bill, Regulatory Relief period, beginning with a 52-percent violated federal law by indexing the
for Small Businesses, Schools and Non- increase this December and more grad- salary threshold to the 40th percentile
prof ts Act, that legislated the delay. If ual increases in 2017, 2018 and 2019. of income, with automatic increases
compromise legislation is not enacted The legislation would also remove the every three years.
Both lawsuits state that DOL abused
after Congress returns from its elec- automatic increase to the threshold.
On December 1, the rule increases
tion break, the overtime rule will take
effect on December 1.
More than 50 business groups the salary level under which full-time
filed suit in federal court to block salaried supervisory employees qual-
Five Democrats joined Republicans changes to the Overtime Rule. Twen- ify for overtime pay from $23,660 an-
in support of the legislation. Rep. Kurt ty-one states also f led a lawsuit chal- nually to $47,476 annually. n
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USGlass, Metal & Glazing | November 2016