Hoosier State Today

On June 13, 2024, a group of 31 Republican Senators, led by Senator Mike Braun, Senator Bill Cassidy, Senator Tommy Tuberville, and Senate Republican Leader Mitch McConnell, announced their challenge to President Biden’s new Overtime Rule. This rule, published by the Department of Labor, increases the minimum salary threshold for overtime pay from $35,568 to $58,656 starting in January 2025 and mandates further increases every three years.

Senator Braun expressed concerns about the impact on small businesses: “When the free market sets the price of labor, opportunity and prosperity are the result. 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.”

The rule replaces a previous threshold set during the Trump administration in 2019 at $35,568. The new proposed threshold is significantly higher than that suggested during Obama's tenure ($47,476), which was invalidated by a federal court as an overreach of executive authority.

Senator Cassidy criticized the timing amid economic challenges: “Americans are already struggling to make ends meet under Bidenomics. With inflation at 40-year highs and millions dropping out of the workforce, Biden’s overtime rule pours gasoline on the fire.”

Senator Cotton highlighted potential negative impacts on employment: “Joe Biden’s economy is bad enough for working families and small businesses without additional meddling from D.C. bureaucrats and the Biden administration.”

Other senators echoed similar sentiments. Senator Marshall described raising the overtime threshold as "reckless," while Senator Hyde-Smith emphasized its adverse effects on rural states with lower living costs.

Senator Lummis argued that Wyoming's small business owners have suffered under what she termed anti-growth policies: “For more than three years, the Biden administration has punished small business owners across Wyoming with its record-breaking inflation rates and anti-growth policies."

The National Restaurant Association also voiced opposition through Sean Kennedy: “The National Restaurant Association has serious concerns with the impact the overtime rule will have on restaurant operators... Input costs for operators have increased significantly since then... We appreciate Sen. Braun showing his support of the industry by introducing this legislation.”

The Senators plan to introduce their disapproval resolution under the Congressional Review Act today.