Legislation Introduced to Block New DOL Overtime Pay Rule

Lawmakers have introduced a measure to block the US Department of Labor’s (DOL) new overtime rule, citing concerns from businesses that the regulation will increase employer costs. Representative Tim Walberg (R-MI) and Senator Mike Braun (R-IN) introduced resolutions in the House and Senate under the Congressional Review Act (CRA) to prevent the rule from taking effect. The DOL’s rule aims to expand overtime pay eligibility to approximately 4 million workers by raising the exemption threshold annual salary to $58,656 and updating this rate every three years.

The regulation, set to be implemented in phases starting July 1, has been challenged by major business groups and faces legal battles in Texas district courts. Plaintiffs, including the state of Texas, argue that the DOL has overstepped its authority under the Fair Labor Standards Act and the Administrative Procedure Act, claiming the rule will impose significant costs on businesses and result in job losses.

President Biden previously vetoed a CRA measure to block a DOL rule on environmental, social, and governance considerations in investing and another bipartisan resolution aimed at undoing a National Labor Relations Board rule on the joint employer standard.