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Congress Pushes Back on DOL's Overtime Rule Bookmark

Photo by en.wikipedia.org

Over 100 members of Congress sent a letter to Labor Secretary Tom Perez this week expressing concern with the Administration's efforts to finalize a new rule this year that would more than double the salary threshold to determine who is eligible for overtime pay. Among the members of Congress were Dan Benishek, Mike Bishop, Bill Huizenga, and Dave Trott.

The Department of Labor released a proposed rule last summer that would require employers to pay overtime wages to employees making $50,440 or less per year, which would be a 113 percent increase over the current threshold.  

Numerous organizations, including MSAE, submitted comments on the proposed rule to DOL last year. MSAE reported that the the new rule would adversely affect many nonprofit organizations. To contain payroll costs from increased overtime obligations, employers would have to either lay off employees or exclude reclassified employees from telework and career growth opportunities outside of core business hours.

MSAE also noted in its letter that the $50,440 salary threshold should be keyed to regional cost-of-living differences rather than Washington D.C. data.  

In the Feb. 9 letter, 108 members of Congress urged DOL to reconsider moving forward with the rule as drafted. "The belief that this rule change will increase millions of workers' paychecks is simply shortsighted," the letter states. "Unfortunately, a change of this magnitude is likely to have unintended consequences regarding how an employer compensates its employees, which would negatively affect workers." 

DOL has yet to suggest what changes, if any, might be made to the final rule, but has indicated it may issue a final rule as soon as spring 2016.

MSAE is going to address this issue with the Michigan Congressional Delegation on March 9 and 10. We welcome your support to this Washington D.C. FlyIn. ASAE has $300 scholarships to assist with your expenses. Email your interest to intern2@msae.org.



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