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PIA Supports Overtime Reform and Review Act (S. 3464)

PIA National signed on to a letter in support of the Overtime Reform and Review Act.
October 19, 2016

On October 14, 2016, PIA National signed on to a letter submitted by the Partnership to Protect Workplace Opportunity (PPWO) in support of S. 3464, the Overtime Reform and Review Act. Despite objections from small businesses, nonprofits, educational institutions, and municipal governments, the Department of Labor (DOL)’s revision to the overtime rule doubles the salary threshold for exemption from overtime from $23,660 annually to $47,476 annually—higher than the minimum set by any state legislature.  Further, the rule automatically updates the threshold every three years without consideration of economic circumstances or stakeholder input.

S. 3464 addresses concerns about the rule by phasing in the DOL’s new salary threshold in four stages over five years, starting with a substantial salary threshold increase to approximately $36,000 on December 1, 2016, followed by a “pause year” in 2017 to allow employers to review and adjust for the consequences of this new rule. Further increases to the salary level would occur annually thereafter, until reaching the final rule’s new threshold of $47,476 on December 1, 2020.  Equally important is that the bill prohibits the final rule’s automatic increases to the salary threshold, yet allows the DOL to propose changes to overtime regulations in the future through the customary notice and comment process. While PIA National opposes the final revisions to the rule, we support efforts to minimize their impact.

Sen. Lamar Alexander (R-TN), author of S. 3464, highlighted a few organizations supporting his bill, including PIA, in a press release his office issued on Oct. 18.

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