Representative Proposes Law that Would Slow Down Overtime Rule by Years

A Representative from Oregon has introduced an Act in Congress that would slow down the overtime rules that are slated to go into effect in December.

According to a press release, the Overtime Reform and Enhancement Act introduced by Rep. Schrader would ease the impact of the regulations by allowing the threshold to rise to just under $36,000 this year, with the remainder phased in over the next three years.

“The Labor Department’s changes to the overtime threshold are too much, too fast for both employers and employees to adjust to without serious negative consequences for both. The Schrader bill addresses the ‘too fast’ part of the problem and we support it,” said the Senior Vice President of the National Retail Federation.

U.S. Secretary of Labor Thomas E. Perez said in response to the introduction of the Overtime Reform and Enhancement Act. The proposed legislation would delay implementation of the department’s final rule updating overtime protections for millions of U.S. workers.

The overtime rule would raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.

It would, also, automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.

“Millions of workers have been waiting years for the overtime rules to catch up to reality and ensure that working people get the pay or time with their families that they deserve. This legislation would ask them to wait even longer. The President and I think that American workers have waited long enough for a fair day’s pay for a long day’s work. That’s our vision of an economy that works for everyone. By delaying implementation and removing the automatic updating of the salary threshold, the proposed legislation stands in stark contrast to that vision,” said Perez.