Efforts to Delay in Congress, Courts
On December 1, the new federal overtime rule is scheduled to go into effect, estimated to extend overtime eligibility to more than 4 million workers. Under the new rule, an employee must have a guaranteed salary of $47,476 or more to qualify as exempt from overtime rules under the executive, administrative, or professional exemptions. That’s more than double the current minimum salary level of $23,660.
IHRSA is concerned about the potential costs to health clubs posed by the overtime rule and about the short time frame for businesses to prepare for compliance. Therefore, IHRSA has joined the Partnership to Protect Workplace Opportunity (PPWO), a diverse group of businesses and associations advocating that regulations take into account the economic realities facing businesses.
Potential Congressional relief. On September 28, the House of Representatives passed H.R. 6094 “Regulatory Relief for Small Business, Schools, and Nonprofits Act.” This bill would delay the implementation of the overtime rule for 6 months until June 1, 2017. A related bill, S. 3462, was introduced into the Senate on September 29. The Senate must pass this measure either before they adjourn for the election or in a possible lame duck session that could be held after the election. IHRSA will be joining the other members of the PPWO in asking the Senate to pass S. 3462.
Potential legal relief. In addition to the legislative effort, a lawsuit has been filed by fifty-five business groups seeking to stop the implementation of the overtime rules. And, twenty-one states are jointly filing a case against implementation.
IHRSA discussed this issues in both May and July and we will keep you informed of any new developments as they emerge. In the meantime, if you have questions or concerns, please email IHRSA’s public policy team at firstname.lastname@example.org.