Senator King Sends Letter Urging OMB to Consider Unintended Consequences of the DOL Overtime RuleImage Banner

Senator King Sends Letter Urging OMB to Consider Unintended Consequences of the DOL Overtime Rule

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Senator King Sends Letter Urging OMB to Consider Unintended Consequences of the DOL Overtime Rule

April 25, 2016

On April 12, Senator Angus King (I-ME) wrote a letter to the Office of Management and Budget (OMB) expressing concerns and urging it to ensure that it conducts a comprehensive analysis of the proposed rule out of the Department of Labor (DOL) that will update the overtime exemption threshold for "white collar" employees. According to his news release, Senator King believes that proposed rule "raises the threshold too much, too quickly" and will likely result in reduced hours and benefits for impacted employees. To "facilitate a smoother transition that supports sustainable wage growth," King recommends that OMB "consider regional overtime standards that reflect geographic and economic conditions and a tiered implementation timeline, similar to federal minimum wage standards". Additionally, he says that the automatic update mechanism contained within the proposed rule is "not in line with the intent of the Fair Labor Standards Act (FLSA)" and that OMB should consider approaches that would ensure that the percentage of workers covered by the rule remains constant over time.

ANCOR recommended setting thresholds based on geographic variances, a lower threshold, and a longer, phased-in implementation of the rule in its public comments.