DOL May Lower Threshold for New Overtime Rule

Last week, anonymous sources close to the Department of Labor (DOL) reported the new overtime rule threshold for salary exempt workers may be lowered from $50,440 to $47,000.

This change signals acknowledgement from the White House that the DOL’s new overtime rule will hurt small businesses and their employees, but a $3,000 reduction may be too little too late.

Lisa Horn, spokesperson for the Partnership to Protect Workplace Opportunity, which represents a coalition of business groups opposed to the DOL’s new overtime rule, is unimpressed by the reduction: “This is still a 99 percent increase. A token reduction will not alleviate the harm this rule will do to nonprofits, colleges, and small businesses and their employees.”

In addition to raising the cost of labor and restricting workplace flexibility, the new overtime rule applies a misguided one-size-fit approach across the entire country. According to Lisa Horn, “The salary threshold must take into account regional differences in cost of living, which the current Labor Department approach does not.”

Congress has an opportunity to block the DOL new overtime rule by passing H.R. 4773 – Protecting Workplace Advancement and Opportunity Act. The health of our economy is largely dependent on the growth of U.S. businesses, something the DOL clearly fails to understand.

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