Ranking Member Cassidy, Braun, Colleagues Introduce CRA to Repeal Biden’s New Overtime Rule
WASHINGTON – Today, U.S. Senators Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Mike Braun (R-IN), Tommy Tuberville (R-AL), and 28 Republican colleagues introduced a Congressional Review Act (CRA) resolution of disapproval to repeal the Department of Labor’s (DOL) final rule that dramatically increases the overtime pay threshold by 65 percent, eliminating jobs and raising prices on American families.
“Americans are already struggling to make ends meet under Bidenomics. With inflation at 40-year highs and millions dropping out of the workforce, Biden’s overtime rule pours gasoline on the fire,” said Dr. Cassidy. “Businesses shouldn’t be forced to choose between laying off their workers and raising prices on families.”
“When the free market sets the price of labor, opportunity and prosperity are the result. When the federal government sets the price of labor by one-size-fits-all mandates, small businesses are forced to fire employees and close shop to make ends meet. We’re leading a challenge to this new Biden rule because this White House’s out-of-touch economic policies have been an unparalleled disaster for American wages,” said Senator Braun.
The Biden administration’s final rule increases the threshold for salaried employees to be exempt from overtime from $35,568 to $58,656, a 65 percent increase since the last time the level was raised under the Trump administration in 2020. DOL’s new salary level is so high that it will exclude many executive, administrative, and professional employees in violation of the statute, which requires them to be exempt from overtime pay.
Additionally, the policy also automatically increases the overtime threshold every three years using DOL wage data, further perpetuating inflation. The rule will particularly harm small businesses and result in lower base pay for workers, lack of new job opportunities, and potential layoffs. The rule will lead to increased prices for goods and services, forcing American families to spend more money out of pocket for essential products at a time of soaring inflation under President Biden. Colleges and universities will also be negatively impacted—as non-profits and public entities, they are less able to absorb the increase in cost, which will result in layoffs and tuition hikes.
Previously, the Obama administration attempted to increase the overtime threshold to $47,476. Federal courts struck down the Obama-era rule in 2017 after finding the administration had exceeded its authority under the Fair Labor Standards Act (FLSA) by issuing the rule. The new Biden rule, which is significantly higher than the invalidated Obama standard, is expected to face legal action and will create regulatory uncertainty and confusion for employers.
The resolution is also cosponsored by Republican Leader Mitch McConnell (R-KY), Senate Minority Whip John Thune (R-SD), and U.S. Senators John Barrasso (R-WY), Steve Daines (R-MT), Lindsey Graham (R-SC), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Shelley Moore Capito (R-WV), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), 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), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Tim Scott (R-SC), Roger Wicker (R-MS), and Todd Young (R-IN).
This CRA is endorsed by Heritage Action, the International Franchise Association, and the National Restaurant Association.
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