Reasonable Overtime Legislation Introduced to Phase-in Threshold Increase

Reasonable Overtime Legislation Introduced to Phase-in Threshold Increase

The Overtime Reform and Enhancement Act is legislation that would initiate a three-year phase-in of the Department of Labor’s new overtime rule, which would reach the Department of Labor’s proposed $47,476 in 2019.

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July 20, 2016

HR

Last week Congressman Kurt Schrader (OR-5), Congressman Jim Cooper (TN-5), Congressman Henry Cuellar (TX-28) and Congressman Collin Peterson (MN-7) introduced the Overtime Reform and Enhancement Act, legislation that will initiate a three-year phase-in of the Department of Labor’s new overtime rule, which would reach the Department of Labor’s proposed $47,476 in 2019.  The legislation also eliminates the automatic three-year increase to the salary threshold established under the new rule. The bill recognizes that future administrations can and should update the overtime rules, as they are required to under the Fair Labor Standards Act, but limits the ability of the DOL to update the rules on autopilot. This will allow stakeholders to comment on proposed changes and require the DOL to ensure the rules are working as intended.

The annual increases under the bill are:
December 1, 2016 -- $35,984 ($692 per week)
December 1, 2017 -- $39,780 ($765 per week)
December 1, 2018 -- $43,628 ($839 per week)
December 1, 2019 -- $47,476 ($913 per week)
 
NPMA announced that it issued a letter in support of this legislation and will begin using the NPMA grassroots network and in-district office visits with key legislators to support this reasonable compromise.