Westbank Louisiana News

On June 13, 2024, U.S. Senators Bill Cassidy (R-LA), Mike Braun (R-IN), Tommy Tuberville (R-AL), and 28 Republican colleagues introduced a Congressional Review Act (CRA) resolution to repeal the Department of Labor’s final rule that significantly increases the overtime pay threshold by 65 percent.

"Americans are already struggling to make ends meet under Bidenomics. With inflation at 40-year highs and millions dropping out of the workforce, Biden’s overtime rule pours gasoline on the fire," said Dr. Cassidy. "Businesses shouldn’t be forced to choose between laying off their workers and raising prices on families."

"When the free market sets the price of labor, opportunity and prosperity are the result. When the federal government sets the price of labor by one-size-fits-all mandates, small businesses are forced to fire employees and close shop to make ends meet. We’re leading a challenge to this new Biden rule because this White House’s out-of-touch economic policies have been an unparalleled disaster for American wages," said Senator Braun.

The new rule raises the threshold for salaried employees exempt from overtime from $35,568 to $58,656, a substantial increase since it was last updated in 2020 under the Trump administration. Critics argue that this will exclude many executive, administrative, and professional employees from being exempt from overtime pay as required by statute.

The policy also includes automatic increases in the overtime threshold every three years based on DOL wage data. Opponents believe this will perpetuate inflation and harm small businesses by reducing base pay for workers, limiting job opportunities, and potentially causing layoffs. They also predict increased prices for goods and services due to higher operational costs.

Colleges and universities may face particular challenges as non-profits or public entities less capable of absorbing these increased costs could see layoffs or tuition hikes.

Previously, an attempt by the Obama administration in 2017 to raise the threshold was struck down by federal courts after being found in violation of authority under the Fair Labor Standards Act (FLSA). The current rule is expected to face similar legal challenges.

The resolution is co-sponsored by several prominent Republicans including Mitch McConnell (R-KY), John Thune (R-SD), John Barrasso (R-WY), Steve Daines (R-MT), Lindsey Graham (R-SC), Marsha Blackburn (R-TN), among others.

This CRA has received endorsements from Heritage Action, the International Franchise Association, and the National Restaurant Association.

For further updates from HELP Republicans visit their website or follow them on Twitter @GOPHELP.