,,ii  ,calendar ,no4 #ffa #aadth        
,,congress  #b;d ,session  ,s4 #cdfd    
,,in ,,the ,,senate ,,of ,,the ,,united 
,,states  ,september #bi1 #bjaf ,mr4    
,alexander 7for himself1 ,ms4 ,collins1 
,mr4 ,lankford1 ,mr4 ,scott1 and ,mr4   
,flake7 introduced the following bill2  
which was read the first time  ,november
 #ae1 #bjaf,read the second time and    
placed on the calendar  ,a ,,bill  ,to  
provide incremental increases to the    
salary threshold for exemptions for     
executive1 administrative1 professional1
 outside sales1 and computer employees  
under the ,fair ,labor ,standards ,act  
of #aich1 and for other purposes4  #a4  
,short title  ,this ,act may be cited as
 the ,overtime ,reform and ,review ,act4
  #b4 ,incremental increases to salary  
threshold  7a7 ,in general ,section #ac 
of the ,fair ,labor ,standards ,act of  
#aich 7#bi ,u4,s4,c4 #bac7 is amended-- 
7#a7 in subsection 7a77#a71 by inserting
 subsection 7k7 and after subject to2   
and  7#b7 by adding at the end the      

following3  7k7 ,requirements for salary
 threshold  7#a7 ,in general ,in        
promulgating regulations for purposes of
 defining and delimiting the terms      
defining employees exempt under         
subsection 7a77#a71 the ,secretary shall
 require that any employee exempt under 
such subsection is compensated at a rate
 that is not less than the applicable   
salary threshold established under      
paragraph 7#b74  7#b7 ,incremental      
increases  7,a7 ,initial threshold ,the 
,secretary shall establish an applicable
 salary threshold1 beginning on         
,december #a1 #bjaf1 that is a rate of  
compensation equal to #ce1ihd per year1 
or #fib per week4  7,b7 ,subsequent     
increases ,notwithstanding subparagraph 
7,a7 and subject to paragraph 7#c71 the 
applicable salary threshold established 
under subparagraph 7,a7 may be increased
 to a rate of compensation that is equal
 to--  7i7 beginning on ,december #a1   
#bjah1 #ci1ghj per year or #gfe per     
week2  7ii7 beginning on ,december #a1  

#bjai1 #dc1fbh per year or #hci per     
week2  7iii7 beginning on ,december #a1 
#bjbj1 #dg1dgf per year or #iac per     
week2 and  7iv7 beginning on ,december  
#a1 #bjba1 any rate of compensation     
provided by the ,secretary in accordance
 with paragraph 7#d7 and subsection 7l74
  7#c7 ,requirements for increases ,with
 respect to nonprofit organizations     
7including nonprofit institutions of    
higher education71 ,medicare or         
,medicaid dependent health care         
providers1 and ,state and local         
governments1 the increases provided in  
clauses 7i71 7ii71 and 7iii7 of         
paragraph 7#b77;,b7 shall occur only    
if--  7,a7 the ,comptroller ,general of 
the ,united ,states conducts and submits
 the study under section #c of the      
,overtime ,reform and ,review ,act in   
accordance with that section2 and  7,b7 
not later than ,june #a1 #bjah1 the     
,comptroller ,general1 in coordination  
with the ,secretary and the ,chief      
,counsel for ,advocacy of the ,small    

,business ,administration1 certifies    
that the increase in the salary         
threshold under paragraph 7#b77;,a7 from
 the salary threshold in effect prior to
 ,december #a1 #bjaf1 has not--  7i7    
resulted in an increased rate of        
part-time employment2 or  7ii7          
negatively impacted workplace           
flexibility1 benefit structures1 career 
advancement opportunity1 or job growth4 
7#d7 ,salary threshold after ,december  
#a1 #bjba ,not prior to ,december #a1   
#bjba1 the ,secretary may issue a rule  
through notice and comment rulemaking in
 accordance with section #eec of title  
#e1 ,united ,states ,code1 to change the
 rate of compensation for the applicable
 salary threshold under paragraph 7#b74 
7#e7 ,rule of construction ,nothing in  
this subsection shall require the       
,secretary to promulgate the regulations
 described in this subsection in        
accordance with the formal rulemaking   
provisions of sections #eef and #eeg of 
title #e1 ,united ,states ,code4  4  7b7

 ,definitions ,section #c of the ,fair  
,labor ,standards ,act of #aich 7#bi    
,u4,s4,c4 #bjc7 is amended by adding at 
the end the following3  7z7 ,medicare or
 ,medicaid dependent health care        
provider means an employer who derives  
more than #ej percent of its revenue    
from payments under the ,medicare       
program established under title ,,xviii 
of the ,social ,security ,act 7#db      
,u4,s4,c4 #acie et seq471 a ,state plan 
under the ,medicaid program under title 
,,xix of such ,act 7#db ,u4,s4,c4 #acif 
et seq471 or both4  4  7c7 ,effective   
date ,this section1 and the amendments  
made by this section1 shall take effect 
on ,december #a1 #bjaf4  #c4 ,,gao study
  7a7 ,in general ,not later than ,march
 #a1 #bjah1 the ,comptroller ,general of
 the ,united ,states shall conduct1 and 
submit in accordance with subsection    
7c71 a study on the implementation of   
the salary threshold provided under     
section #ac7k77#b77;,a7 of the ,fair    
,labor ,standards ,act of #aich 7#bi    

,u4,s4,c4 #bac7k77#b77;,a774  7b7       
,contents ,the study under this section 
shall include each of the following3    
7#a7 ,the number of small entities      
affected by the increase in the salary  
threshold provided under section        
#ac7k77#b77;,a7 of the ,fair ,labor     
,standards ,act of #aich compared to the
 salary threshold in effect prior to    
,december #a1 #bjaf4  7#b7 ,an analysis 
of the impact of such increase based on 
regional1 ,state1 metropolitan1 and     
nonmetropolitan salary data and         
cost-of-living differences4  7#c7 ,the  
percentile of full-time salaried workers
 affected by such increase1 including   
disaggregation by--  7,a7 ,state2  7,b7 
industry subsector2  7,c7 small         
organizations2  7,d7 small government   
jurisdictions2  7,e7 nonprofit          
organizations2  7,f7 institutions of    
higher education as defined in section  
#aja of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajja72  7,g7      
,medicare or ,medicaid dependent health 

care providers1 as defined in section #c
 of the ,fair ,labor ,standards ,act of 
#aich 7#bi ,u4,s4,c4 #bjc72 and  7,h7   
small businesses4  7#d7 ,management and 
human resource costs for all employers  
in implementing such increase4  7#e7    
,the impact of the increase on          
lower-wage industries1 including by     
geographic area4  7#f7 ,all nonfinancial
 costs associated with the increase1    
including the impact on employment      
7including rates of unemployment and    
part-time employment71 workplace        
flexibility1 employee benefit           
structures1 career advancement          
opportunity1 new business formation and 
termination1 and loss of market share to
 foreign competition4  7#g7 ,the impact 
of the increase on the number of        
individuals in the ,united ,states who  
are marginally attached or discouraged  
as defined by the ,bureau of ,labor     
,statistics4  7c7 ,submission ,the study
 under this section shall be submitted  
to the ,committee on ,health1           

,education1 ,labor1 and ,pensions of the
 ,senate1 the ,committee on ,education  
and the ,workforce of the ,house of     
,representatives1 the ,committee on     
,small ,business and ,entrepreneurship  
of the ,senate1 and the ,committee on   
,small ,business of the ,house of       
,representatives4  #d4 ,enforcement of  
,department of ,labor rule  7a7 ,in     
general ,beginning on the date of       
enactment of this ,act1 or ,december #a1
 #bjaf1 whichever date is earlier-- 7#a7
 the rule submitted by the ,department  
of ,labor entitled ,defining and        
,delimiting the ,exemptions for         
,executive1 ,administrative1            
,professional1 ,outside ,sales and      
,computer ,employees 7#ha ,fed4 ,reg4   
#cbcia 7,may #bc1 #bjaf77 shall cease to
 have any force or effect2  7#b7 the    
,secretary of ,labor shall not enforce  
such rule based on conduct occurring    
before or after such date2  7#c7 an     
employee shall not have any right of    
action against an employer for the      

employer's failure to comply with such  
rule at any time prior to or after such 
date2 and  7#d7 any regulations that    
were amended by such rule shall be      
restored and revived as if such rule had
 never taken effect4  7b7 ,clarification
 ,notwithstanding subsection 7a71       
nothing in this ,act shall be construed 
to create a right of action for an      
employer against an employee for the    
recoupment of any payments made to the  
employee prior to the date of enactment 
of this ,act1 or ,december #a1 #bjaf1   
whichever date is earlier1 that were in 
compliance with the rule described in   
subsection 7a77#a74  #e4 ,fair ,labor   
,standards ,act of #aich clarification  
7a7 ,sense of the ,senate ,it is the    
sense of the ,senate that section       
#ac7;a77#a7 of the ,fair ,labor         
,standards ,act of #aich 7#bi ,u4,s4,c4 
#bac7;a77#a771 including as in effect on
 the day before the date of enactment of
 this ,act--  7#a7 requires the         
,secretary of ,labor to issue a new rule

 through notice and comment rulemaking  
in accordance with section #eec of title
 #e1 ,united ,states ,code1 for each    
specific and enumerated change to the   
salary threshold provided in regulations
 promulgated under such section         
#ac7;a77#a71 proposed by the ,secretary 
of ,labor2 and  7#b7 prohibits any rule 
that would result in a change to the    
salary threshold for which a specific   
and enumerated rate of compensation for 
the salary threshold was not proposed1  
including any procedure that            
automatically updates the salary        
threshold4  7b7 ,,flsa amendment        
,section #ac of the ,fair ,labor        
,standards ,act of #aich 7#bi ,u4,s4,c4 
#bac71 as amended by section #b1 is     
further amended--  7#a7 in subsection   
7a77#a71 by inserting in accordance with
 subsection 7l7 after regulations of the
 ,secretary2 and  7#b7 by adding at the 
end the following3  7l7 ,requirements   
for updating the salary threshold  7#a7 
,in general ,for any change to the      

salary threshold provided in regulations
 promulgated under subsection 7a77#a71  
the ,secretary shall--  7,a7 propose a  
specific and enumerated rate of         
compensation required for an employee to
 be exempt under such subsection2 and   
7,b7 issue a rule through notice and    
comment rulemaking in accordance with   
section #eec of title #e1 ,united       
,states ,code4  7#b7 ,prohibition on    
automatic updates ,in accordance with   
paragraph 7#a71 the ,secretary may not  
issue any rule that would result in a   
change to the salary threshold provided 
in regulations promulgated under        
subsection 7a77#a7 based on any         
procedure that automatically updates the
 salary threshold without taking each   
action required under paragraph 7#a74  4
  ,november #ae1 #bjaf,read the second  
time and placed on the calendar