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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 firstname.lastname@example.org.
Many organizations across the country, including associations, are preparing for a surge in personnel costs as they prepare for the Obama administration’s overhaul to the Department of Labor Overtime Rule. According to a letter from the Congress to the Secretary of Labor, the Labor Department's proposal, due to be released in final form in July, would more than double the salary threshold to $50,440 per year, up from $23,660. With implementation of this rule, about five million workers would become newly eligible for overtime pay. In addition, the minimum salary would automatically increase each year to match the 40th percentile of the average salary earned by full-time employees in the United States.
image from: littler.com
Every association is different. But no matter who you are or whom you represent, one thing is for certain: there is lot of work to be done.
Whether it’s managing members, raising funds, contending with new rules and regulations, or delivering quality programs that serve your mission, there is only so much that can be done in a given day, week, or year.
And that’s not when you’re trying to hire new employees or keep existing ones, or reduce overhead costs, or stay up to date with new technology and ways of communicating.
Does this sound stressful? Perhaps a bit. But that’s part of the job — managing people, processes, finances, and beyond.
The most successful associations are efficient, tech-savvy, and skilled at communicating with members, sponsors, and their local (and online) communities.
Another trait these associations share: They track employee time.