ASAE submitted comments yesterday to the Department of Labor (DOL) as it prepares to revise regulations for overtime eligibility.
The overtime rule has been identified as a major area of concern for nonprofit employers. For this reason, ASAE is sharing its comments with other associations, as well as model comments that others can use or adapt if they want to provide their own feedback to DOL. Comments are due by Sept. 25 and can be filed electronically through Regulations.gov.
Earlier this year, Labor Secretary Alexander Acosta said the salary threshold proposed by the department under the Obama administration was excessive and too burdensome on many employers. The Obama-era rule would have doubled (to $47,476) the salary threshold under which virtually all workers are guaranteed overtime pay if they work more than 40 hours per week. Acosta has suggested, however, that the current minimum salary level of $23,660 should be updated and the DOL’s request for comments is a first step in the agency’s plan to revise the regulations. The overtime rule was last adjusted in 2004.
ASAE’s comments focus on how potential changes to overtime eligibility would impact associations and other nonprofit employers. As it did with the Obama-era rule, ASAE emphasized that it’s not against increasing the overtime salary threshold, but that creating a “one-size-fits-all” salary threshold for overtime eligibility across the country – inconsiderate of cost of living differences – would not be workable for many employers. Based on the federal government’s inflation calculator, ASAE has suggested that an inflation-adjusted minimum salary level of $30,830 would be an appropriate threshold for overtime eligibility moving forward.
DOL has asked for input on whether the current threshold of $23,660 should be updated for inflation, and whether there should be multiple standard salary thresholds based on employer size, region of the country and other factors. The agency also asked employers to explain how they prepared for the rule to take effect and whether there are unique challenges for small businesses that should be taken into account.
If you have questions about the overtime rule or ASAE’s comments, please contact the Public Policy team at firstname.lastname@example.org.