Scott Statement on Obama Administration’s Final Overtime Rule

Washington – U.S. Senator Tim Scott (R-SC), author of the Protecting Workplace Advancement and Opportunity Act, released the following statement following the Obama administration’s publication of a final ruleradically changing who is eligible for overtime pay. The Department of Labor’s rule more thandoubled the salary threshold for whom is eligible, which promises to have a host of unintended consequences for the very workers they are trying to help.

“The Obama Administration’s new overtime rule will have swift and damaging impacts on hard working American families, as well as small businesses, non-profits and colleges and universities,”saidSenator Tim Scott, a member of the Senate LaborCommittee. “This president and his administration continue to disregard the fulleconomic realities of their policies, and their lack of foresight is clearly evident in the final overtime rule. Our nation’s economy, which is still struggling to recover, simply cannot afford to have the Obamaadministrationcontinue to implement more damaging rules and regulations. Bureaucrats in Washington cannot create jobs, but they certainly can destroy them.”

Senator Scott’s Protecting Workplace Advancement and Opportunity Act, which he introduced in March withSenator Lamar Alexander (R-TN) and Representatives Tim Walberg (R-MI) and John Kline (R-MN), wouldnullify the rule. The bill would require the department to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employersbefore issuing any subsequent rule. It would also ensure future changes to the salary threshold accurately reflect the economic realities facing workers and employers by making clear automatic increases without notice and comment are not allowed under current law.

A broad coalition of associations, higher education institutions, businesses, nonprofits and other stakeholders have come out against the rule and asked the Obama administration to withdraw the proposal and perform a new analysis on the impact of the rule to better account for differences in local economic conditions.

Last week, during a Small Business Committee hearing, Senator Scott questioned witnesses on the overtime rule that will hurt our workforce and employers. Video from that hearing is available HERE.