Proposed Bill Delays New Overtime Pay Regulation

March 21st, 2016 by Casey Flores

Industry associations are cheering on introduction of a bill that would delay the implementation of the federal government’s mandatory overtime pay regulation.

Introduced by Rep. Tim Walberg (R-Mich.) and Sen. Tim Scott (R-S.C.), the Protecting Workplace Advancement and Opportunity Act requires the U.S. Department of Labor (DOL) to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employers.

The bill was introduced in response to grassroots concern that the dramatic changes proposed will not only result in an estimated cost of $8.4 billion per year, but will also reduce opportunity and flexibility for millions of executive, professional and administrative employees. As proposed, the salary level under which employees qualify for overtime pay will increase from $455 per week ($23,360 annually) to an estimated $970 per week ($50,440 annually).

Earlier this week, DOL sent a final rule to the White House’s Office of Management Budget (OMB) for review. OMB’s Office of Information of Regulatory Affairs (OIRA) is required to take a minimum of 30 days reviewing the regulation. Upon completion of the review by OIRA, DOL will either publish a final rule or further revise the rule. NLBMDA has requested a meeting with OIRA regarding DOL’s overtime proposal and also plans to submit comments on the rule. DOL is expected to publish a final rule as soon as late-April.

“Lumber dealers are pleased with the action taken by Congressman Walberg and Senator Scott,” says National Lumber and Building Materials Dealers Association (NLBMDA) president and CEO Jonathan Paine. “NLBMDA encourages Congress to delay the final rule until DOL conducts a comprehensive economic analysis as recommended by the Obama Administration’s Small Business Administration.”

The association is encouraging dealers to take action by sending a letter to their Representative and Senators asking for their support of the Protecting Workplace Advancement and Opportunity Act (S.2707 and H.R 4773).

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