AGC-backed legislation would block a pending U.S. DOL overtime regulation increasing the overtime threshold by nearly 70 percent, from $35,568 to $60,209.

On March 7, AGC joined 84 employer organizations urging Congress to support the Overtime Pay Flexibility Act, H.R. 7367. The bill would prohibit a U.S. Department of Labor (DOL) rule to increase the threshold for coverage of overtime regulations under the Fair Labor Standards Act by nearly 70 percent, from $35,568 to $60,209. AGC opposes the rule because it would be too much for employers (especially small business construction companies) to absorb at one time and would, accordingly, threaten employees’ future.

The proposal would also result in large numbers of employees being reclassified under the Fair Labor Standards Act as non-exempt employees, force employees to be reassigned or let go as employers make operational changes needed to achieve the organization’s mission under new pay and staffing paradigms. In addition, the proposal would automatically adjust the overtime thresholds every three years that would threaten repeats of such issues noted above.

The DOL rule is expected to be finalized and effective soon. H.R. 7367 would simply stop this version of the misguided DOL rulemaking from being finalized and for DOL to start the rulemaking process over.