Senate Republicans challenge proposed federal overtime rule

On Thursday, U.S. Senators Mike Braun (R-Ind.), Bill Cassidy (R-La.), Tommy Tuberville (R-Ala.), and Republican Leader Mitch McConnell (R-Ky.) led 31 Republican Senators in challenging President Biden’s new Overtime Rule published by the Department of Labor.

This Overtime Rule increases the minimum salary threshold for overtime pay from the current $35,568 to $58,656 in January 2025, and then increase every three years.

According to the senators, small businesses have been negatively impacted in general by the economy. Inflation has increased 20 percent since President Biden took office, which they argue is a direct result of his federal “tax-and-spending binge,” forcing small businesses to make hard choices like raising prices just to stay above water.

Now, the president’s approval rating is under 30 percent among small business owners, dropping consistently since he took office.

The U.S. Department of Labor now wants to apply the same approach to wages, which have been outpaced by inflation for the past 26 months, with this new Overtime Rule.

This rule replaces a Trump rule from 2019 that set the salary threshold at $35,568. It is notable that Biden’s new proposed salary threshold ($55,068) is significantly higher than the one proposed by the Obama administration ($47,476) which was declared to be an invalid extension of executive authority in federal court.

The senators say this follows President Biden’s precedent of ignoring judicial rulings, as he did when transferring of billions in student loan debt from borrowers to taxpayers.

The senators are challenging the rule under the Congressional Review Act, introducing their disapproval resolution on Thursday.

“When the free market sets the price of labor, opportunity and prosperity are the result,” Sen. Braun said. “When the federal government sets the price of labor by one-size-fits-all mandates, small businesses are forced to fire employees and close shop to make ends meet. We’re leading a challenge to this new Biden rule because this White House’s out-of-touch economic policies have been an unparalleled disaster for American wages.”

Indiana Senator Todd Young agrees with the resolution.

“After years of rising prices, small businesses need real relief, not more bureaucratic regulation and mandates,” Sen. Young said. “I strongly oppose this rule from the Biden Administration and will continue to support our Hoosier small businesses.”

National Restaurant Association Executive Vice President Sean Kennedy says the Department of Labor did not take stock of the concerns restaurant owners presented regarding the new overtime rule.

“The National Restaurant Association has serious concerns with the impact the overtime rule will have on restaurant operators, especially the significant cost increases that come with it so soon after an increase just four years ago,” Kennedy said. “Input costs for operators have increased significantly since then, with a 30 percent increase in labor costs alone in the last four years. On top of that, the Department of Labor did not heed our concerns, especially as it relates to regional discrepancies and the burden of automatic increases every three years. We appreciate Sen. Braun showing his support of the industry by introducing this legislation to draw attention to problems with the DOL’s approach on this issue.”

This challenge resolution is also endorsed by Heritage Action and the International Franchise Association.

Click here to read the resolution.