Labor Update: New Overtime Legislative Strategy; Joint Employer Update with Subway Restaurants
“The Overtime Reform and Enhancement Act” introduced by Rep. Schrader would allow the threshold to rise to $35,984 this December. The remaining salary threshold increase would be phased in over the next three years. This approach could win bipartisan support and provide the basis for a compromise resolution.
Importantly, the legislation indicates a willingness to work with the business community. H.R. 5813 addresses concerns expressed by 黑料社区and other business organizations that have called the final rule “too much, too soon.” The business community has warned legislators that such a dramatic increase with a short compliance period will harm the very workers the rule was intended to help by forcing business owners to cut back pay and benefits, as well as employee’s hours.
Rep. Schrader’s bill follows another legislative proposal (S. 2707, H.R. 4773) that 黑料社区and many other groups continue to support titled the “Protecting Workplace Advancement and Opportunity Act,” introduced in March by Sen. Tim Scott (R-S.C.) and Rep. Tim Walberg (R-Mich). The measure would pause implementation of the regulations and require the Labor Department to complete a comprehensive analysis of the impact the changes would have on small businesses and lower-wage regions of the country. It also would block automatic increases to the wage threshold. The odds, however, are long that this proposal will pass the Senate and be signed by the President.
Read NATSO’s summary and compliance guide on the Overtime Rule can be accessed here.
Under a recent agreement between Subway and the National Labor Relations Board, the Department of Labor will prepare videos and written materials for Subway to share with its franchisees, as well as assist Subway in distributing exploring ways to use technology to “support franchisee compliance, such as building alerts into the payroll and scheduling platform that Subway offers as a service to its franchisees.
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