New overtime pay regulation is harmful and short-sighted

May 25, 2016 U.S. Sen. Mike Enzi, Washington, D.C.


The Department of Labor released its final overtime regulation on May 18, which could force businesses to shift employees from salaried to hourly positions, reduce full-time hours and pay for employees, and automate jobs rather than create employment opportunities.

The rule, which is set to take effect in December, would double the salary threshold at which businesses are required to pay employees overtime. The rule is short-sighted with unintended consequences that will hurt businesses and workers alike.

This rule is just another example of this Administration's inability to understand that one-size-fits-all regulations don't work. These changes will impose more federal requirements on employers, especially for low-margin industries like restaurants and retail. It's going to make it harder for businesses to succeed.

When you force businesses into a position where they have to make bad choices, it doesn't just hurt employers, but also the employees by limiting workplace flexibility and increasing reliance on part-time workers.

I am a cosponsor of the Protecting Workplace Advancement and Opportunity Act, S. 2707, which would stop the new overtime rule and require any future changes to be based on comprehensive economic analysis of the potential economic impact.

Print Story
Read The Ranger...