Legislation that would delay the implementation of new overtime rules by six months passed the US House of Representatives, but faces a potential veto by the President if it progresses.
The Republican-backed Regulatory Relief for Small Businesses, Schools and Nonprofits Act, or HR 6094, introduced by Rep. Tim Walberg, R-Mich., would postpone until June 1, 2017, the implementation of new Department of Labor rules that would shift the threshold for determining overtime pay.
The House approved the bill with a 246 to 177 vote. The bill moved to the US Senate, where it faced an uncertain future.
The changes to the overtime rules are scheduled to go into effect on Dec. 1. The new rules would raise the threshold of eligibility for overtime from $455 per week to $913 per week, or $47,476 annually. As a result, about 4.2 million more workers across the U.S. would become eligible for overtime pay.
Last week, 21 states joined forces to challenge the rules in a federal lawsuit filed in the Eastern District of Texas. The complaint contends that the Department of Labor doesn’t have the authority to automatically increase the threshold every three years, as the new rules require, and that the shift will result in layoffs and job elimination as businesses struggle with soaring labor costs.
A similar lawsuit was filed by a coalition of business trade groups, led by the U.S. Chamber of Commerce.
Walberg’s bill to postpone enactment of the rules has won support of the National Restaurant Association, the National Retail Federation and the National Council of Chain Restaurants.
- Category: National
- Written by Press Room
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