The Department of Labor (DOL) has proposed a massive restructuring of the guidelines that classify how employees receive overtime pay. This rule will affect thousands of small businesses, local governments and non-profits. We expect to see the final version late this summer.
Under the Department of Labor’s proposal, the salary threshold for overtime would more than double, burdening employers with huge expenses and downgrading many salaried workers to hourly workers. By raising the salary threshold for executive, administrative and professional employees, employers will be forced to decide whether to reclassify millions of employees to non-exempt status or increase their salaries to keep them exempt. Workers would be paid only for hours they actually work, and may not even earn overtime as many employers will limit their work hours to fewer than 40 in a week.
The U.S. Chamber of Commerce is spearheading a response to the DOL Overtime Rule and recently held a symposium on this issue. The webcast is available here for those who are interested in more information.
Legislative Issues Tag: Employment Issues