The U.S. Department of Labor issued a final rule on May 18, 2016, modifying overtime eligibility under the Fair Labor Standards Act, implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer technology employees. The new rules mandate overtime pay for 4.5 million employees earning salaries between $23,660 and $47,476 who previously weren’t guaranteed this benefit. Companies will probably react to overtime by both cutting base wages and hiring more workers.
It is all but certain that employers will have additional costs. The rule projects that employers will pay an additional $12 billion over the next 10 years. Compliance and reporting costs will be in the tens, if not hundreds, of millions of dollars. It is also reasonably certain that employers will reduce available overtime for some employees, restructure or demote other employees, and hire part-time help without benefits to comply with the rule. DOL has acknowledged this and sees this as a positive benefit as it could provide some workers with “more family time.”
NAMIC filed comments on the 2015 opposing proposed rule, and when the Senate Committee on Small Business and Entrepreneurship held hearings in May, NAMIC submitted testimony. The rule may be challenged in the courts and Congress, and NAMIC will provide support where appropriate.
September 30, 2019 The U.S. Department of Labor published a final rule in the Federal Register Sept. 27 that will make 1.3 million American workers newly eligible for overtime pay under the Fair Labor Standards Act. The department also provided a fact sheet on the new rule. Read more
March 18, 2019 The Department of Labor released the text of a proposed rule March 12 that would make more than one million more American workers eligible for overtime. The proposal increases the minimum salary required for an employee to qualify for overtime from... Read more
February 19, 2019 The U.S. Department of Labor is finalizing a new version of federal regulation dictating overtime pay for workers, having sent its draft of the long-awaited notice of proposed rulemaking on the white collar overtime exemptions to the White House Office... Read more
February 6, 2017 Following his Jan. 30 Presidential Executive Order on Reducing Regulation and Controlling Regulatory Costs that requires any new regulations to repeal two existing regulations, President Donald Trump on Feb. 3 signed the Presidential Executive Order on... Read more
November 28, 2016 NAMIC members and businesses nationwide scored a major victory in the fight against the Department of Labor's massive increase of the salary threshold under which workers must receive overtime pay. It would have taken effect... Read more