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Thompson objects to new labor overtime rule

Congressman Glenn Thompson is pushing back against a Department of Labor rule that would raise the salary threshold for overtime eligibility.

The rule would, according to the Department of Labor, increase “the salary thresholds required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements.

The amount would increase from the current $35,568 up to $43,888 on July 1 and then $58,656 on Jan. 1, 2025.

“The department conducted extensive engagement with employers, workers, unions and other stakeholders before issuing its proposed rule in September 2023, and considered more than 33,000 comments in developing its final rule,” the Department said. “The updated rule defines and delimits who is a bona fide executive, administrative and professional employee exempt from the Fair Labor Standards Act’s overtime protections.”

Thompson said in his most recent newsletter that the rule “will have a devastating impact on America’s small businesses, nonprofits, colleges, universities, and other employers.

“This proposal would impose significant regulatory compliance burdens and higher costs on businesses, limit workplace flexibility, and reduce career advancement opportunities for many Americans.”

In addition to the overtime regulatory change, the Department of Labor says that “(b)y better identifying which employees are executive, administrative or professional employees who should be overtime exempt, the final rule ensures that those employees who are not exempt receive time-and-a-half pay when working more than 40 hours in a week or gain more time with their families.”

It also includes a mechanism to update the threshold every three years.

“This protects future erosion of overtime protections so that they do not become less effective over time,” the department says.

“I previously joined my colleagues in a letter to DOL to seek a delay in the rulemaking but our call was not heeded as the Department disregarded the value of stakeholder input,” Thompson said. “Many small businesses are stretched after a global pandemic, persistent inflation, and higher operating costs.

“This is not the time to add burdens on our job creators. Federal labor laws should make it easier, not harder, for employers to invest in America’s workers.”

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