DOL to Lower Threshold for Overtime Pay but Employers will still Suffer


Recently, the Department of Labor (DOL) confirmed that the overtime rule would not increase as high as initially proposed. The threshold, however, is still said to grow 99%, making the updated threshold for workers that will receive overtime pay $47,000 a year, down from the original $50,440.The threshold drop seems to be little more than an acknowledgment from the White House that the overtime rule will have a critical and negative impact on employers across the country. Critics of the rule agree that the 99% increase will undoubtedly place significant financial and administrative hardship on employers.

The $3,000 reduction is not the compromise, or helping-hand employers were looking for, as stated by Lisa Horn, from the Partnership to Protect Workplace Opportunity, “the reduction will not alleviate the harm this rule will do to colleges, small businesses, and nonprofits.”

The final rule will clear the Office of Management and Budget in the upcoming weeks. The last chance for an alternative outcome comes from Congress, who has the opportunity to stop the overtime rule if they pass the bill, Protecting Workplace Advancement and Opportunity Act.

The bill will require the DOL to perform further economic research to assess the impact the overtime rule will have on academic institutions, local governments, small businesses, and nonprofits.

As we have mentioned, employers should not wait to see if Congress can or will stop the proposed overtime rule and start preparing for regulations to go into effect now. Including updating pay practices and analyzing financial impacts.

Career Resources (CRI) will continue to update you with the latest information on the overtime rule. If you have any questions, you can contact CRI today.

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