Austin News

U.S. Senators John Cornyn (R-TX), Mike Braun (R-IN), and 30 of their Senate Republican colleagues have introduced a joint resolution of disapproval under the Congressional Review Act. The resolution aims to overturn the U.S. Department of Labor’s new Overtime Rule, which would raise the minimum salary threshold for overtime pay from $35,568 to $58,656.

"Small businesses have been forced to bear the brunt of Joe Biden’s failed economic policies, and this out-of-touch move by the Department of Labor is just the latest example," said Sen. Cornyn. "This rule disregards the power of the free market and would result in the closure of countless mom-and-pop businesses in Texas, and I’m glad to join my colleagues to ensure it is struck down."

"When the free market sets the price of labor, opportunity and prosperity are the result," stated Sen. Braun. "When the federal government sets the price of labor by one-size-fits-all mandates, small businesses are forced to fire employees and close shop to make ends meet. We’re leading a challenge to this new Biden rule because this White House’s out-of-touch economic policies have been an unparalleled disaster for American wages."

Senate Republican Leader Mitch McConnell (R-KY) along with Senators Bill Cassidy (R-LA), Tommy Tuberville (R-AL), John Thune (R-SD), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Chuck Grassley (R-IA), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Tim Scott (R-SC), Roger Wicker(R-MS) ,and Todd Young(R-IN) joined in support of this resolution.

During President Obama's administration, a similar rule was proposed that required overtime pay for employees earning less than $47,476 annually but was blocked by a federal judge in Texas before its implementation.

The Biden administration's latest rule proposes increasing the minimum salary threshold for overtime pay from $35,568 to $43,888 on July 1, 2024, and subsequently to $58,656 on January 1, 2025. This change comes at a time when wages have not kept pace with inflation over the past 26 months. According to proponents of this resolution, such an increase would further burden small businesses already struggling due to inflation.

The resolution has received endorsements from Heritage Action, the International Franchise Association, and the National Restaurant Association.