New Bill Would Phase in New Overtime Rules

(Congress, Dept of Labor) Permanent link
Overtime Paycheck

On Thursday, July 14, legislation was introduced in the House of Representatives to amend the implementation of the final overtime rule changes. The legislation, HR5813 - The Overtime Reform and Enhancement Act, would not alter the final rule but instead institute a more reasonable phased-in approach to the increase to the exempt salary threshold. Beginning in December, the salary threshold would increase by 50 percent and future increases would phase in the remainder over three years.

On December 1, 2016, the proposed legislation will immediately increase the threshold more than 50 percent to $35,984. In each subsequent year, the salary threshold will increase by $74 per week until December 1, 2019, when the $47,476 threshold is met.

  • Currently:                 $23,660 annually or $455 per week
  • December 1, 2016     $35,984 annually or $692 per week 
  • December 1, 2017     $39,832 annually or $766 per week
  • December 1, 2018     $43,680 annually or $840 per week
  • December 1, 2019     $47,476 annually or $913 per week

The measure is sponsored by Congressman Kurt Schrader (OR-5), Congressman Jim Cooper (TN-5), Congressman Henry Cuellar (TX-28) and Congressman Collin Peterson (MN-7). Congressman Peterson explains “While I believe the time has come to increase the overtime threshold, the DOL rule would put businesses in a bind and potentially lead to job loss. Both businesses and constituents in my district have expressed concern about the impact of an immediate threshold increase. A three-year phase in will provide adequate time for business to adapt to the new standard while also ensuring workers are fairly compensated.”

However, this measure will not receive immediate consideration as the House and Senate have adjourned for the summer recess, and will return after Labor Day. During the recess, make sure your Congressional Representatives know how this rule will impact your business. Visit


Posted by Karen Woodie at 07/18/2016 10:48:06 AM |