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Simpson Opposes Onerous Rule from Department of Labor

Congressman cosponsors legislation to block DOL from implementing job-killing rule

Washington, May 2, 2016
Tags: Economy

Idaho Congressman Simpson is a cosponsor of H.R. 4773, the Protecting Workplace Advancement and Opportunity Act, which blocks a U.S. Department of Labor rule to significantly increase the salary threshold for exemption from federal overtime pay requirements for managerial, professional or administrative positions.   

Currently under the Fair Labor Standards Act (FLSA), salaried employees who earn $23,660 or less are eligible for overtime pay if they work more than 40 hours per week.  In its final rule, the U.S. Department of Labor rule is expected to increase the income eligibility threshold to workers who make less than $47,000 a year.

“I am not necessarily opposed to increasing the salary threshold for exempt positions, but I am concerned that a sudden 99% increase will be too burdensome for nonprofits, academic institutions, and small businesses in Idaho” Simpson said. “The rule could create unintended consequences such as reduced hours and benefits for employees as businesses would be required to immediately absorb new labor costs.  Furthermore, this federal salary threshold does not take into account regional differences in wages and cost of living, which could put Idaho businesses at a disadvantage.” 

H.R. 4773 would block the current proposed regulation from taking effect and require the U.S. Department of Labor to perform further analysis of the impact that the changes to overtime regulations will have on small businesses, nonprofits, and institutes of higher education; as well as the impact on employment and employee benefit structures for exempt and nonexempt employees, before proceeding with its rule.

H.R. 4773 is under consideration by the House Committee on Education and the Workforce.