U.S. House Moves to Delay Overtime Pay Rule
The U.S. House of Representatives last week approved a measure to delay by six months the Obama administration's rule to extend mandatory overtime pay to more than 4 million workers, despite a White House promise to veto the bill. The House passed the legislation on a partisan vote of 246-177, with five Democrats joining 241 Republicans in favor of moving the rule's effective date from Dec. 1 to June 1. The legislation, however, faces likely opposition by Senate Democrats who could block it from advancing in that chamber.
Total Retail's Take: Retailers are watching this bill very closely as it will require employers to pay overtime to salaried workers earning less than $47,500 a year, double the current threshold of $23,660. Republicans and business groups argue the rule will force employers to demote salaried workers to hourly positions and create more part-time jobs. The White House said on Tuesday that President Barack Obama would veto legislation delaying the rule. We will be watching movement on this bill very closely in the days ahead.