During a hearing of the U.S. House Committee on Education and the Workforce on Nov. 29, there was little agreement over the impact the U.S. Department of Labor's (DOL's) proposed overtime rule would have on average workers.

Supporters said it would increase incomes and work/life balance for employees, while opponents argued it would lead to job cuts, fewer career advancement opportunities and lower morale.

The proposed rule would:

• Increase the salary threshold for overtime exemptions from $684 per week ($35,568 annually for a full-year worker) to $1,059 per week ($55,068 annually for a full-year worker). The increase reflects the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage census region (currently the South).
• Increase the salary threshold for highly compensated employees from $107,432 annually to $143,988 annually. The increase reflects the earnings of the 85th percentile of full-time salaried workers nationally.
• Implement automatic increases every three years to all salary thresholds.
  

'Misguided' or Necessary Policy?

Rep. Kevin Kiley, R-Calif., said the proposed rule would jeopardize businesses and "couldn't come at a worse time" because of recent high inflation and financial losses that occurred during the pandemic.

"If employers can't afford the new mandate, many will be forced to simply lay off their employees," he said. "While some employers may choose to increase salaries to surpass the new threshold, these possible...

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