WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) and Senator Mike Braun (R-IN) joined their Republican colleagues to introduce a Congressional Review Act (CRA) resolution of disapproval to repeal the Department of Labor’s (DOL) final rule that dramatically increases the overtime pay threshold by 65 percent, eliminating jobs and raising prices on American families.
“In the wake of historically high inflation, the Biden administration has recklessly ruled to increase overtime pay—forcing small businesses and non-profits to scramble to make ends meet,” said Senator Tuberville. “We should be supporting these entities that are the backbone of the American economy, not making it harder for them to keep their doors open.”
The resolution is also cosponsored by U.S. Senators John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Bill Cassidy (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Steve Daines (R-MT), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Mitch McConnell (R-KY), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Tim Scott (R-SC), John Thune (R-SD), Roger Wicker (R-MS), and Todd Young (R-IN) in sponsoring the resolution.
Heritage Action, the International Franchise Association, and the National Restaurant Association endorse the resolution.
Full text of the resolution can be found here.
BACKGROUND
The Biden administration’s final rule increases the threshold for salaried employees to be exempt from overtime from $35,568 to $58,656, a 65 percent increase since the last time the level was raised under the Trump administration in 2020. DOL’s new salary level is so high that it will exclude many executive, administrative, and professional employees in violation of the statute, which requires them to be exempt from overtime pay.
Additionally, the policy also automatically increases the overtime threshold every three years using DOL wage data, further perpetuating inflation. The rule will particularly harm small businesses and result in lower base pay for workers, lack of new job opportunities, and potential layoffs. The rule will lead to increased prices for goods and services, forcing American families to spend more money out of pocket for essential products at a time of soaring inflation under President Biden. Colleges and universities will also be negatively impacted—as non-profits and public entities, they are less able to absorb the increase in cost, which could result in layoffs and tuition hikes.
Previously, the Obama administration attempted to increase the overtime threshold to $47,476. Federal courts struck down the Obama-era rule in 2017 after finding the administration had exceeded its authority under the Fair Labor Standards Act (FLSA). The new Biden rule, which is significantly higher than the invalidated Obama standard, is expected to face legal action and will create regulatory uncertainty and confusion for employers.
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Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, and HELP Committees.
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