Congress Holds Hearings on Overtime Rule
In June 2016, Congress held hearings on the impact the Department of Labor’s (DOL) new rule governing overtime pay will have on businesses. Hearings were held by the Committee on Education and the Workforce and the Small Business Committee, both of which focused on how harmful the new rule will be for the small business community. IEC provided each committee its perspective on how the new rule will hurt the small merit-shop electrical contractor through statements it submitted for the record.
Released in March and effective December 1, the new rule increases the threshold by 100% from $455/week ($23,660 annually) to $913 per week ($47,476 annually). The rule also includes future automatic updates to the threshold every three years, beginning on January 1, 2020. Legislation that would halt its implementation is pending in the form of H.R.4773/S.2707, the Protecting Workplace Advancement and Opportunity Act. Recently, H.J.Res.95/S.J.Res.34 were both introduced in the House and Senate that would completely reverse the rule via the Congressional Review Act.