08/08/2017

Comments on Changes to DOL's Overtime Rule Due Sept. 25

The comments can be filed online through a government website

As you may know, the U.S. Department of Labor (DOL) has called for public comments on potential changes to the Obama administration's overtime rule. Comments are due by Sept. 25 and can be filed electronically through Regulations.gov.  

This has been identified as an issue of significant importance to many associations and other nonprofit employers across the country. For this reason, in addition to the American Society of Association Executives' (ASAE) own comments, the organization also prepared model comments that associations may use or adapt to share their feedback with DOL on the issue of overtime eligibility. 

ASAE's comments focus on how potential changes to overtime eligibility would impact associations and other nonprofit employers. Consistent with the position we took on the Obama-era rule, ASAE emphasized that it is not against increasing the overtime salary threshold, but that creating a "one-size-fits-all" salary threshold for overtime eligibility across the country - inconsiderate of cost of living differences - would not be workable for many employers. Based on the federal government's inflation calculator, ASAE suggested an inflation-adjusted minimum salary level of $30,830 would be an appropriate threshold for overtime eligibility moving forward. 

The overtime rule finalized by DOL last year would have doubled (to $47,476) the salary threshold under which virtually all workers are guaranteed overtime pay if they work more than 40 hours per week. The rule was set to take effect last December, but many organizations, including ASAE, as well as 21 states, challenged the rule and a federal judge in Texas issued a preliminary injunction blocking the rule. 

Earlier this month, the DOL made clear that it does not agree with the salary threshold set by the Obama administration, but the agency also defended its right to set a salary threshold on who qualifies for overtime pay in the future.

The request for public comment published in the Federal Register is the first step in the agency's plan to revise overtime regulations. The agency has asked for input on whether the current threshold of $23,660 should be updated for inflation, and whether there should be multiple standard salary thresholds based on employer size, region of the country and other factors. The agency also asked employers to explain how they prepared for the rule to take effect and whether there are unique challenges for small businesses that should be taken into account. 

As always, if you have any questions about this issue or ASAE's comments, ASAE asks you to contact its Public Policy team at publicpolicy@asaecenter.org.