On February 1, NLBMDA attended a symposium sponsored by the U.S. Chamber of Commerce titled Impacts of the Proposed Overtime Regulation on Vulnerable Employers. The event highlighted the impact the proposed overtime regulations will have on the most vulnerable employers—small businesses, nonprofits, academic institutions, and state and local governments. The symposium also featured presentations and panels from a variety of business leaders struggling to determine how they will be able to absorb the increased labor costs the new overtime regulation will create. The primary objective of the symposium was to bring greater awareness on the devastating impact that the Proposed Overtime Rule will have on the business community.
On July 6, 2015, the Department of Labor (DOL) proposed changes to the regulations that determine whether a white collar employee will be classified as exempt from being paid overtime. Under the proposal, the salary level under which employees qualify for overtime pay will increase from $455 per week ($23,360 annually) to an estimated $970 per week ($50,440 annually).
NLBMDA submitted comments in September opposing the proposal. A final rule is expected from DOL in July with the new thresholds taking effect in late-2016 or early-2017. NLBMDA members are encouraged to send a message or tweet their Representative asking to contact Secretary Perez and express concern with the current overtime proposal.
If you would like to watch the symposium and learn more about how the overtime proposal will affect a variety of industries, click here. Analysis conducted by Oxford Economics for the National Retail Federation found that the proposed overtime rule will erode career pathway opportunities, disproportionately affect lower-cost states, and may actually hurt the workers the rule is designed to help. A copy of the study can be found here.