A bill introduced last week would require the Department of Labor to phase in its new overtime pay rule over the span of three years.
The DOL proposed a rule in May that would increase the pay threshold for employees who are exempt from overtime pay to $47,476 effective Dec. 1. The new bill, the Overtime Reform and Enhancement Act, would raise the pay threshold from $23,660 to $35,984 on Dec. 1, followed by $74-per-week increases until reaching the DOL’s threshold on Dec. 1, 2019.
The gradual increase will help small business owners operate without sudden disruption, said Rep. Kurt Schrader (D-Ore.), an author of the bill, in a statement.
“Since the DOL’s immediate phase-in date was announced, we’ve heard from business owners and their employees who are worried about implementing this increase overnight,” he said. “Without sufficient time to plan for the increase, cuts and demotions will become inevitable, and workers will actually end up making less than they made before.”
The National Association of Home Builders supported the new bill. The DOL rule may force small business owners to scale back on pay and benefits and cut workers’ hour, the organization said, and hurt the people the rule intends to help.
"The nation's home builders applaud Rep. Schrader for sponsoring this important bill that represents a balanced approach to raise the overtime threshold for workers while minimizing the impact on small businesses," said NAHB Chairman Ed Brady in a statement.
The congressman’s proposed rollout timetable would be: Dec. 1, 2016, $35,984; Dec. 1, 2017, $39,814; Dec. 1, 2018, $43,645; Dec. 1, 2019, $47,476.
