Support Grows for Legislation Reforming Overtime Rule

Monday, August 22, 2016

Support is growing for the Overtime Reform and Enhancement Act (H.R. 5813), which would phase-in the increase of the Department of Labor’s (DOL) Overtime Rule over three years and eliminate the automatic increase. Over 40 trade associations, including NLBMDA, have expressed their support for the legislation. As part of the legislation, the rule would incrementally phase in the new threshold over the next three years, beginning with a 50 percent increase this December, and 25 percent increases at the start of 2018 and 2019. The legislation was introduced last month by Rep. Kurt Schrader (D-OR).

If no action is taken, the rule will take effect on December 1 with the threshold adjusting automatically every three years based on the 40th percentile of average earnings for salaried workers in the lowest wage census region, which is currently the South. DOL is scheduled to next increase the threshold levels on January 1, 2020, and post the new salary levels 150 days in advance of the effective date (August 1, 2019).

The rule increases the salary level under which full-time salaried “white collar” employees qualify for overtime pay from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). Given the impact the rule will have on dealers, NLBMDA members should contact their representative in support of H.R. 5813.

NLBMDA 8/22/2016

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