Republican Sens. Tommy Tuberville (AL) and Mike Braun (IN) on Monday introduced a joint resolution under the Congressional Review Act that if passed would repeal the federal overtime rule set to go into effect on July 1.
Introduction of the resolution follows action in the House of Representatives earlier this month also designed to block implementation of the rule. Given the Senate’s control by Democrats and a president who is a Democrat, however, it is unclear whether the legislators’ effort would be successful in blocking the rule.
The current pay threshold for overtime pay exemption is $35,568 per year or $684 per week — anyone making less than that amount is entitled to overtime pay, according to the Department of Labor. Under the rule set to go into effect July 1, the threshold will increase to $43,888 per year, or $844 per week.
When the changes to the overtime rule first were proposed last year, senior living industry advocates told McKnight’s Senior Living that they were “ill-timed” and would worsen workforce issues for providers, threatening access for residents.
Tuberville said that “[i]n the wake of historically high inflation, the Biden administration has recklessly ruled to increase overtime pay — forcing small businesses and non-profits to scramble to make ends meet. We should be supporting these entities that are the backbone of the American economy, not making it harder for them to keep their doors open.”
Braun previously said that the free market, not the federal government, should set the price of labor. “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,” he said.
The bill is co-sponsored by several Republicans: Sens. John Barrasso (WY), Marsha Blackburn (TN), John Boozman (AR), Katie Britt (AL), Shelley Moore Capito (WV), Bill Cassidy (LA), John Cornyn (TX), Tom Cotton (AR), Kevin Cramer (ND), Mike Crapo (ID), Steve Daines (MT), Lindsey Graham (SC), Chuck Grassley (IA), Bill Hagerty (TN), John Hoeven (ND), Cindy Hyde-Smith (MS), John Kennedy (LA), James Lankford (OK), Cynthia Lummis (WY), Roger Marshall (KS), Mitch McConnell (KY), Jerry Moran (KS), Markwayne Mullin (OK), Pete Ricketts (NE), Jim Risch (ID), Tim Scott (SC), John Thune (SD), Roger Wicker (MS) and Todd Young (IN).
The move comes as the new overtime rule faces challenges in court as well in two separate lawsuits filed earlier this month by software company Flint Avenue and the state of Texas, Bloomberg reported.
In a related case, the Supreme Court said Monday that it will hear a case to determine where the burden of proof lies for an employer claiming to be exempt from paying overtime pay to employees who work more than 40 hours a week. The case, E.M.D. Sales v. Carrera, will be heard when the court reconvenes for a new session in October and could affect overtime pay regardless of the threshold amount that is in effect.
