US House Passes Legislation to Delay Effective Date of Overtime Rule, But Future of Bill Remains Unclear

October 10, 2016

The US House of Representatives passed a bill in late September to delay by six months the effective date of the Department of Labor's (DOL's) controversial overtime regulations. Under the legislation, the rule would take effect on June 1, 2017 instead of December 1, 2016. H.R. 6094, sponsored by Michigan Congressman Tim Walberg, passed mostly along party lines by a vote of 246-177. The bill now goes to the Senate, where its future is unclear. Even if the bill passes the US Senate, President Barack Obama's Office of Management and Budget announced that, if the bill is presented to the president, he will veto it. 

The new overtime regulations are expected to dramatically expand the number of employees who can qualify for overtime pay. The regulations will raise the threshold for guaranteed overtime pay from a salary of $23,660 to $47,476 (or from $455 to $913 per week). Under the regulations, the salary threshold will be tied to the 40th percentile for full-time salaried workers in the lowest income Census region (currently the south) and will be updated every three years. If economic modeling projections prove to be accurate, it could rise to more than $51,000 annually when the first update takes effect on January 1, 2020.

View more information on the new overtime regulations

Be prepared for the new regulations by joining us for the “Exempt or Not Exempt? New FLSA Overtime Regs” webinar on November 17, 2016 with Don Scharg of Bodman.