Mobile Courant

On June 17, 2024, U.S. Senators Tommy Tuberville (R-AL) and Mike Braun (R-IN), along with their Republican colleagues, introduced a Congressional Review Act (CRA) resolution of disapproval aimed at repealing the Department of Labor’s (DOL) final rule that increases the overtime pay threshold by 65 percent. The senators argue that this rule will eliminate jobs and raise prices for American families.

“In the wake of historically high inflation, the Biden administration has recklessly ruled to increase overtime pay—forcing small businesses and non-profits to scramble to make ends meet,” said Senator Tuberville. “We should be supporting these entities that are the backbone of the American economy, not making it harder for them to keep their doors open.”

The resolution is cosponsored by U.S. Senators John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Bill Cassidy (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Steve Daines (R-MT), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Mitch McConnell (R-KY), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Tim Scott (R-SC), John Thune (R-SD), Roger Wicker (R-MS) and Todd Young(R-IN). The resolution has endorsements from Heritage Action, the International Franchise Association, and the National Restaurant Association.

The Biden administration’s final rule raises the threshold for salaried employees exempt from overtime from $35,568 to $58,656—a 65 percent increase since its last adjustment under the Trump administration in 2020. Critics argue that this new salary level will exclude many executive, administrative, and professional employees in violation of statutory requirements that they be exempt from overtime pay. Additionally, they contend that automatically increasing the overtime threshold every three years using DOL wage data will perpetuate inflation.

Opponents of the rule claim it will particularly harm small businesses by resulting in lower base pay for workers, fewer job opportunities, potential layoffs, and increased prices for goods and services. They also argue that colleges and universities could face negative impacts due to their inability as non-profits and public entities to absorb increased costs without resorting to layoffs or tuition hikes.

Previously, an attempt by the Obama administration to increase the overtime threshold to $47,476 was struck down by federal courts in 2017 after finding it exceeded authority under the Fair Labor Standards Act. The new Biden rule is expected to face legal challenges as well.

Senator Tommy Tuberville represents Alabama in the United States Senate and serves on several committees including Armed Services, Agriculture, Veterans’ Affairs, and HELP.