Ranking Member Cassidy Rebukes Biden’s New Overtime Rule Eliminating Jobs, Raising Prices on Families

WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, rebuked 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.  

Specifically, the Biden administration’s final rule increases the threshold of a salaried employee to be eligible for 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. 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. 

“Americans continue to feel the effects of Bidenomics as they struggle to make ends meet. This policy throws gasoline on the fire,” said Dr. Cassidy. “The new overtime rule forces businesses to make a choice: eliminate jobs, gut wages, or raise prices on families already feeling the affordability crunch under President Biden.” 

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. 

For all news and updates from HELP Republicans, visit our website or Twitter at @GOPHELP. Click here to unsubscribe.