Final Overtime Regulations Expected Soon
Posted in: Legislative Updates
The final release of the Department of Labor’s (DOL) regulations governing the “white collar” exemption for overtime pay will likely be released before the end of the month. The regulations are currently in their final phase at the Office of Information and Regulatory Affairs (OIRA), an office within the Office of Management and Budget (OMB) that reviews most regulations before they’re released. The DOL’s proposal would increase the minimum salary to qualify as an exempt employee from the current $455 per week ($23,660 per year) to $970 per week ($50,440 per year). A recent Politico Pro report cited sources that indicated the final rules may have a reduced threshold of $47,000 per year, which is still nearly a 100 percent increase and would be similarly opposed by IEC.
Last week, IEC was joined by IEC member Kevin Cole of Ennis Electric, Associated Builders and Contractors (ABC), and Associated General Contractors (AGC) in a meeting with OIRA and DOL officials to explain just how negative an impact all facets of the new rule would have on the construction industry. IEC followed up the meeting with written comments to OIRA outlining an example of just how the proposed rule would impact the merit shop electrical contractor. In addition to the initial salary threshold increase, the proposed rule includes an annual increase to the threshold and a 60-day implementation period every year.
Earlier this week, the Senate Committee on Small Business and Entrepreneurship held a hearing titled “An Examination of the Administration’s Overtime Rule and the Rising Costs of Doing Business” to which IEC submitted a statement for the record.
IEC continues to work in opposition to this rule with others in the Partnership to Protect Workplace Opportunity (PPWO) by supporting the Protecting Workplace Advancement and Opportunity Act (S. 2707/H.R. 4773), which would require a more thorough economic impact study before any increase can be implemented. To further explain the impact the proposed rule would have on the business community and employees, the PPWO developed a video that IEC encourages chapters and members to share with their members and colleagues.