SEMA eNews Vol. 19, No. 40, October 6, 2016

U.S. House Passes Bill to Delay Overtime Pay Increases for Salaried Workers

By SEMA Washington, D.C., Staff

The U.S. House of Representatives passed a bill to delay by six months the implementation of a U.S. Department of Labor (DOL) rule which makes an estimated 5 million workers eligible for overtime pay. Last May, the DOL raised the minimum salary threshold required to qualify for the Fair Labor Standards Act’s “salaried-worker” exemption to $47,476 per year, effective December 1, 2016.  Under the previous rule, management, administrative and professional employees who earn a salary of more than $23,660 per year are exempt from receiving overtime pay when they work more than 40 hours a week. The House bill would maintain the old threshold until June 1, 2017. The White House has threatened a veto if Congress passes the bill, although the Senate has not yet considered legislation delaying the rule.

Legislation has also been introduced in both the House and Senate to phase-in the salary threshold increase for overtime pay. The House bill would provide for increases on December 1 of each year: $35,984 in 2016, $39,780 in 2017, $43,628 in 2018, and $47,476 in 2019. The Senate bill would have four increases over five years. Both bills would also prevent implementation of the DOL rule’s automatic cost-of-living increases scheduled to take place every three years starting in 2020. There has been no action to date on the bills. 

For more information, contact Eric Snyder at erics@sema.org.

Rate this article: 
4
Average: 3.5 (2 votes)