Last week, Speaker Paul Ryan (R-Wisc.) called out recent Department of Labor policies as having a “chilling effect” on the economy. Ryan’s statements were in response to an anemic rise in the country’s gross domestic product of only 0.5 percent in the advanced first quarter estimates.
Of note, Speaker Ryan mentioned two DOL policies, the overtime rule and joint employer guidance, which pose a threat to economic growth.
The DOL’s proposed overtime rule dramatically expands overtime pay eligibility to millions of salaried employees (5 million by DOL estimates and 12.5-13.5 by Employment Policy Institute analysis) by raising the salary threshold exemption from $23,000 to around $50,000 (recently Politico reported the DOL is considering a $47,000 threshold down from the proposed $54,000).