U.S. Sen. Tim Scott (R-SC) recently joined Sens. Lamar Alexander (R-TN), Susan Collins (R-ME), James Lankford (R-OK), and Jeff Flake (R-AZ) in introducing a bill to change the timeline of implementation of the “Time Card” overtime rule proposed by the Obama Administration.
The legislation would allow the administration’s increase in the salary threshold to be implemented over five years instead of the current effective date of Dec. 1, as well as implement an independent government watchdog study after the first year of implementation. This would ensure that if the rule was to negatively impact American nonprofits, colleges, universities, state and local governments and many Medicaid/Medicare-eligible facilities they would be exempt from increases in the following years.
“The Overtime Review and Reform Act makes urgently needed modifications to the administration’s rule, which will otherwise on Dec. 1 force changes in overtime pay that are too high, too fast and will result in employers, nonprofits, colleges and others cutting workers’ hours, limiting their workplace benefits and flexibility, as well as costing students more in tuition,” Senate Labor Committee Chairman Sen. Alexander said. “This is a moderate, bipartisan approach that should be able to pass both Houses before December.”
The current salary limit for overtime is $23,660 and the Obama administration wants to raise the amount to $47,476.