In a statement, Speaker Paul Ryan (R-Wis.) called the overtime rule an “absolute disaster” for the economy.
“This regulation hurts the very people it alleges to help,” he said. “Who is hurt most? Students, nonprofit employees, and people starting a new career. By mandating overtime pay at a much higher salary threshold, many small businesses and nonprofits will be unable to afford skilled workers and be forced to eliminate salaried positions, complete with benefits, altogether.”
The rule released late Tuesday makes anyone earning up to $47,476 a year, or roughly $913 a week, eligible for overtime pay.
In a concession to business groups, the administration reduced the threshold for overtime pay by about $3,000, down from the $50,440 cutoff initially proposed, but groups claim the policy change is still too dramatic an increase. The cutoff for overtime pay now stands at $23,660 per year.
Ryan accused President Obama of focusing on his political legacy to the detriment of the country.
“President Obama is rushing through regulations — like the overtime rule — that will cause people to lose their livelihoods. We are committed to fighting this rule and the many others that would be an absolute disaster for our economy.”