U.S. Sen. Lamar Alexander, the Tennessee Republican who chairs the Senate labor committee, said Tuesday that more than 400 business and non-profit groups are backing legislation to stretch out implementation of new overtime rules that will require employers pay time and a half for work over 40 hours for many salaried assistant and mid-level managers.
Under the new Department of Labor regulations set to begin Dec. 1, any salaried worker who makes under $913 a week, or $47,476 a year, must be paid overtime for work over 40 hours a week. Currently, the salary cap is only $23,000.
"Non-profits, local governments, and job creators across the country are supporting the Overtime Reform and Review Act because it makes urgently needed modifications to the administration's rule, which will otherwise on Dec. 1 force changes in overtime pay that are too high, too fast and will result in employers, non-profits, colleges and others cutting workers' hours, limiting their workplace benefits and flexibility, as well as costing students more in tuition," Alexander said.
Alexander's legislation, the Overtime Reform and Review Act, would stretch out over five years the administration's increase in the salary threshold for overtime pay. After allowing a first increase of 50 percent in December, the bill will prohibit an increase in 2017 to give employers and employees an opportunity to adjust while our independent government watchdog, the Government Accountability Office, the GAO, studies the impact of the rule on American workers after the first year of implementation.
"This bill takes a moderate approach based on a bipartisan proposal, and with the support of Senate Democrats should be able to pass both Houses before December," he said.