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News & Press: WIPP Legislative Updates

Clock Ticks Closer to New Overtime Pay Despite Congressional Objections 

Monday, June 13, 2016  
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Clock Ticks Closer to New Overtime Pay Despite Congressional Objections 

 

“This rule will disrupt the lives of countless individuals.” So began a Congressional hearing last week on the Obama Administration’s controversial change to overtime regulations. The Labor Department rule, as reported by WIPP in May, would double the salary threshold that determines if employees must be paid overtime. The Obama Administration views the change as a long overdue modernization of the exemption policies that determine who has to receive overtime pay. Many in Congress disagree. Beyond the hearing, Senators are using an arcane review process of regulation to disapprove of (and stop) the rule. That disapproval is expected to pass with the support of Republican majorities in the House and Senate. 

 

But it may not matter, and here is where things become truly “inside the beltway." The review process under the Congressional Review Act, or “CRA”, gives Congress a set number of days to disapprove of regulations. Their disapproval is sent to the President — who in this case would almost certainly veto the disapproval (since it is his regulation).

 

That dynamic is why in the CRA’s two decades, Congress has successfully stopped only one regulation from going into affect. Presidents typically don’t stop their own regulations. Republicans hoped that the window of review might possibly spill over into 2017 — and a possible Trump Presidency — but the Labor Department beat that deadline by a matter of days. 

 

So for now, despite plenty of disagreement in Congress, the change goes into effect December 1, 2016. Learn how you may be impacted here.   


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