Rounds Statement on Obama Administration’s New Overtime Mandate

WASHINGTON—U.S. Senator Mike Rounds (R-S.D.) today issued the following statement on the Department of Labor’s final rule that would more than double the salary threshold under which employees qualify for overtime pay.

“The Obama administration’s new overtime mandate will hurt both our employees and the employers who hire them,” said Rounds. “Under this rule, restaurants, retailers and small businesses across South Dakota will be faced with increased labor costs or be forced to transition their managers from salary to hourly pay and most likely limit the number of hours they work. This rule makes it more difficult for new and mid-level workers to support their families and advance their career. The best way to strengthen the middle class is to grow our economy by lowering the tax burden, removing costly regulatory mandates and increasing workplace flexibility. Unfortunately, this new rule will have the opposite effect.”

Under current law, salaried managers and administrators do not qualify for time-and-a-half overtime pay if they make $23,660 or more annually. The new rule, effective December 1, will raise the exemption threshold to $47,476. Earlier this year, Rounds cosponsored the Protecting Workplace Advancement and Opportunity Act, which would make certain the Department of Labor pursues a balanced and responsible approach to updating federal overtime rules.

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