WASHINGTON, D.C. — Why is the U.S. Department of Labor moving forward with its proposed “Overtime” rule, which colleges say could raise college tuition by $1,000 percent?
That’s the question that U.S. Sen. Lamar Alexander (R-Tenn.) posed to U.S. Secretary of Labor Tom Perez at a March 17 hearing on the department’s FY17 budget request.
Last month the Tennessee Independent Colleges and Universities Association (TICUA) issued a letter on the topic, saying, “In Tennessee, it is expected that the change will cost each four-year campus a minimum of $1.3 million. For instance, one TICUA member calculated that the first year impact would translate to a $1,000 per student increase in tuition. Another rural TICUA campus noted that the change would impact 133 employees for a total of $3.2 million.”
Also on March 17, Alexander and Senator Tim Scott (R-S.C.) released the Protecting Workplace Advancement and Opportunity Act, legislation to ensure the Department of Labor pursues a balanced and responsible approach to updating federal overtime rules.
Alexander said, “This mandate on employers will hurt the lowest paid American workers the most, by reducing their opportunities for a promotion or a better job and making it all but impossible for workers to negotiate flexible schedules.”
In 2014, the Obama administration began an effort to update the rules surrounding federal wage and hour standards.
As part of that effort, the Department of Labor released a proposal that would more than double the salary threshold under which employees qualify for overtime pay.
Concerns have been raised that the department’s proposed rule will result in workers having less flexibility and opportunity for advancement in the workplace.
The proposal will also raise costs on small businesses, while doing nothing to streamline a complex, outdated maze of overtime rules.
Alexander said the Protecting Workplace Advancement and Opportunity Act will:
- Prevent the department from finalizing a proposal that will limit opportunities for employees and place significant burdens on job creators;
- Require the department to fully and accurately consider the economic impact of any rule on small businesses, nonprofits, institutions of higher education, and others who will be affected;
- Ensure future changes to the salary threshold accurately reflect the economic realities facing workers and employers by making clear automatic increases are not allowed under current law; and
- Promote transparency and accountability by requiring any changes to the duties tests be made available for public review and comment.
