House Speaker Paul Ryan and other Republican lawmakers Wednesday criticized the Obama administration’s new overtime rule and vowed to fight it, saying it would hurt workers and businesses around the country.
“President Obama is rushing through regulations like the overtime rule that will cause people to lose their livelihoods,” Ryan, R-Wis., said in a statement. “We are committed to fighting this rule and the many others that would be an absolute disaster for our economy.”
The Obama administration announced the Labor Department will finalize a rule today that raises the threshold for overtime pay to $47,476 a year, which means anyone under that salary would qualify for overtime pay.
“If you work more than 40 hours a week, you should get paid for it or get extra time off to spend with your family and loved ones,” Obama said on Tuesday. “It’s one of the most important steps we’re taking to help grow middle-class wages and put $12 billion more dollars in the pockets of hardworking Americans over the next 10 years.”
But Republicans point to evidence that the new rule will force businesses to curtail employee hours and even cut jobs in order to make up for the added cost associated with the new overtime rule.
“Because of this rule, many Americans will soon realize they have fewer job prospects, less flexibility in the workplace, and less opportunity to move up the economic ladder,” said House Education and the Workforce Committee Chairman John Kline, R-Minn. “Those who can least afford it will be hit the hardest — small businesses, nonprofits, and educational institutions.”
Democratic lawmakers praised the new rule and said it would boost the pay of middle class wage earners who work more than 40 hours without collecting extra pay.
“These protections will provide a much-needed boost to America’s middle class and represent a significant step forward in getting working people the pay they deserve,” Senate Minority Leader Harry Reid, D-Nev., said. “Millions of Americans will soon receive paychecks that honor and recognize the hard work and long hours they dedicate to their jobs to provide for their families.”
