On July 14, Representative Kurt Schrader (D-OR) introduced the Overtime Reform and Enhancement Act (H.R. 5813), which would phase in the new salary threshold of the Department of Labor (DOL) Overtime final rule over three years and eliminate future automatic salary threshold updates. The Overtime rule, finalized in May, more than doubled the salary threshold for exempt "white collar" workers, including those that perform certain supervisory or managerial duties. The former threshold was $23,660/yr ($455/wk), which was increased by the rule to $47,476/yr ($913/wk). The new threshold is set to go into effect on December 1, 2016.
The legislation as introduced would phase in the increases, starting at $692/wk in 2016, $765/wk in 2017, and $839/wk in 2018 before increasing to $913/wk in 2019. It would also require new rulemaking for any increases past that level, nullifying the DOL's regulation that created a mechanism to increase the threshold automatically every three years.
Secretary of Labor Thomas Perez said in a statement released Friday, "Millions of workers have been waiting years for the overtime rules to catch up to reality and ensure that working people get the pay or time with their families that they deserve. This legislation would ask them to wait even longer. The President and I think that American workers have waited long enough for a fair day’s pay for a long day’s work. That’s our vision of an economy that works for everyone. By delaying implementation and removing the automatic updating of the salary threshold, the proposed legislation stands in stark contrast to that vision.”
ANCOR members should be aware that while this legislation includes the phase-in approach that we recommended in our public comments, ANCOR has not taken a position on this legislation. We are actively monitoring its progress and will continue to report on it. The ANCOR-led legislation, the Disability Community Act of 2016 (H.R. 5902) was introduced the same day, and we are focusing our advocacy efforts on that legislation that will allow for an increased federal match to help providers comply with the Overtime final rule. (See WICs article, "ANCOR-Led Disability Community Act Introduced in the House in Response to DOL Overtime Rule," July 15, 2016.)