[Congressional Record Volume 162, Number 65 (Wednesday, April 27, 2016)]
[House]
[Pages H2002-H2003]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FAIR LABOR STANDARDS ACT
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Pennsylvania (Mr. Perry) for 5 minutes.
Mr. PERRY. Mr. Speaker, this year, job creators should expect
significant changes to Federal wage and hour laws, throwing yet one
more hurdle in front of them and their employees as the U.S. Department
of Labor, the DOL, finalizes new overtime regulations under the Fair
Labor Standards Act, or the FLSA.
The basic premise of the FLSA, which applies to many Pennsylvania
employers, is that if you are receiving a salary, it must be because
your employer is cheating you. The rule that has the force of law
discourages salaried employees and discourages the give-and-take
between employee and employer to work for the best interest of each
one.
There are limited exceptions to the FLSA's overtime obligations for
narrow categories of employees and for those in particular industries
and occupations. The most common exemptions are for white-collar
employees like executive, administrative, and professional employees.
{time} 1030
Currently, an employee must satisfy three criteria to qualify as
exempt from Federal overtime pay: first, you must make a salary;
second, your salary must be more than $455 per week, or $23,660
annually; and third, your primary duties must be consistent with
managerial, professional, or administrative positions as defined by the
Department of Labor. They don't know every single job in every
community across the country, but yet they are the ones that decide,
not the people actually doing the work or the ones who started and own
the business.
Last year, the DOL proposed arbitrarily increasing the salary
threshold to $50,440 per year, a 113 percent increase, just arbitrarily
said that is the way it is going to be. It also proposed automatically
increasing the salary threshold on an annual basis regardless of what
the economy is. If the economy grew at 4 percent, I guess it would be
one thing. If it didn't grow or it grew at 0.3 percent, which is what
GDP is currently, it would still go up--again, just arbitrary. This
doesn't come from Congress. This isn't bandied back and forth between
the Democrats and the Republicans, between the House and the Senate.
This is just bureaucrats making a rule, the force of law.
These proposed rules will bring sweeping changes to Federal wage and
hour laws, and they will be especially burdensome on rural areas, like
central Pennsylvania. They will also significantly impact local
governments, nonprofit organizations, and small retailers, among many
others.
Because of this rule, for instance, a dry cleaner that I met with
recently simply is going to have to make a choice. They are either
going to hire fewer people or raise prices for their customers.
I recently met with county commissioners in the district I am
privileged to represent. If the requirement is raised, as DOL proposes,
50 county employees will be affected, which will result in either fewer
employees or nearly $400,000 in expenses for the county moving forward.
How do you think they are going to offset those costs if they don't
lose those employees or fire those employees? You guessed it. You and I
are going to pay--the local taxpayers.
I also met with the YWCA in my district, a nonprofit organization.
They looked at the potential impact of these regulations and determined
that approximately 30 staff members would be affected, resulting in
either a loss of
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jobs or an additional expense of over $200,000. For a nonprofit that is
struggling to get by, struggling to provide services--whether it is a
daycare for underprivileged folks--or just to keep the doors open, they
are going to have to make a choice, all because of a rule that didn't
come from here. It came from the regulators, as usual, who aren't
interested in the input of the Nation's citizens in all too many cases.
This is just another example of bureaucrats of the administrative
state--in this case, the Department of Labor--developing top-down
regulations that crush organizations like nonprofits, small businesses,
and communities that can least afford it.
For this reason, I am happy to support a solution. We shouldn't have
to provide this solution because this is really a problem that doesn't
exist. But there is a solution, the Protecting Workplace Advancement
and Opportunity Act, introduced by my colleague from Michigan, Mr. Tim
Walberg, which prevents the DOL from implementing this misguided and
completely unnecessary proposal and rule. I strongly urge other Members
to support this important legislation as well.
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