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In late September, ISSA signed on to comments submitted in response to the U.S. Department of Labor’s (DOL) request for information on the disposition of the overtime regulations and the salary threshold that helps define which workers are eligible for overtime pay. The comments were submitted by the Partnership to Protect Workplace Opportunity (PPWO), a business coalition of which ISSA is an active member.
In the comments submitted to DOL, ISSA and the PPWO recommended that the Department adopt a lower level national salary threshold that has been adjusted to minimize small business impacts to low wage regions and industries. ISSA and PPWO commented that most small businesses do not support multiple standard salary levels, as this may cause confusion and complexity to the regulatory process.
ISSA thanks the many member companies that provided their feedback which helped form the basis for these comments submitted to the DOL. To view the comments in their entirety, please click here.
Background. The Fair Labor Standards Act (FLSA) guarantees a minimum wage and overtime pay of time and a half for work over 40 hours a week. In May 2016, DOL finalized a rule that would have changed the standard salary threshold for the “white collar” exemption to overtime pay under the FLSA from $23,660 to $47,476. The white collar exemption is for executive, administrative, professional, outside sales, and computer employees.
In November 2016, one month before the rule was to become effective, the rule was temporarily enjoined by a federal court. In August 2017, the United States District Court for the Eastern District of Texas invalidated the Department of Labor’s 2016 final rule, making the injunction permanent.
In July 2017, DOL published a Request for Information (RFI) seeking feedback on these regulations, as it plans to formulate a new proposal on this issue. DOL requested feedback on the optimal level for the standard salary threshold, and the methodology the agency should utilize to set this threshold. DOL invited comments on whether there should be separate salary thresholds based on employer size, region, or any other factor. DOL also invited feedback on whether small entities encountered any unique challenges posed by this rule, and if they faced any economic and non-economic impacts.
ISSA will continue to monitor and comment on this issue as it progresses within DOL.