September 29, 2016
U.S. Representative Jackie Walorski (IN-02) Wednesday voted to delay the Obama administration’s burdensome overtime rule that, if implemented, would increase costs and red tape for small businesses, colleges, universities, and nonprofits and lead to reduced wages and hours for workers. The House passed H.R. 6094, the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, by a vote of 246 to 177.
“Small businesses and their hardworking employees are vital to our economy, but too often bureaucratic red tape gets in the way of job growth,” Congresswoman Walorski said. “The administration is rushing to implement a misguided regulation that will lead to pay cuts and reduced flexibility for workers. With this bill the House is standing up for the small businesses, schools, and community organizations that will be hardest hit and the employees who will see their paychecks shrink if the rule goes into effect.”
BACKGROUND
The Department of Labor in May finalized a rule raising the compensation level for executive, administrative, and professional employees to be exempt from overtime pay. The rule is set to take effect December 1.
If implemented, the rule would have wide-ranging effects on businesses and employees, including reduced flexibility as salaried employees are forced to clock in and out of work, increased compliance costs and time-consuming paperwork for small businesses, and higher operating costs for colleges, universities, and nonprofit organizations.
H.R. 6094 delays the implementation of the rule for six months to allow businesses, schools, and nonprofits to prepare for the rule’s effects, and to give Congress more time to reform outdated federal overtime rule in a responsible way that does not harm small businesses, nonprofits, and working families.
Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Veterans’ Affairs Committee, House Armed Services Committee and House Committee on Agriculture.