HR Policy Comments Opposing DOL's Proposed Overtime Rule Urge More Collaborative Approach
September 25, 2015
The Association has filed comments recommending the Department of Labor "carefully rethink" its proposed overtime rule and "work with all stakeholders to develop a proposal that actually fulfills the President's memorandum to 'modernize and streamline the existing overtime regulations.'" According to Daniel V. Yager, HR Policy Association President, "the proposal would significantly impact employers in certain industries and regions and DOL suggests the final rule could also require employers to carefully monitor and track the time their managers spend performing concurrent nonexempt duties—thereby reducing workplace flexibility, efficiency, and customer service." The Association's comments asserted:
- The proposed $50,440 salary level test would effectively nullify the statutory exemption for a significant number of employees Congress meant to exempt;
- The proposed rule would significantly limit workplace flexibility;
- The salary level test should not be indexed;
- Nondiscretionary bonuses should count towards a portion of the salary level test; and
- The DOL should not make any changes to the duties tests without first proposing specific regulatory language.
The Association called on DOL to work with all stakeholders to develop a proposal that would update the rules to "address the changing nature of the workplace" and "simplify the regulations to make them easier for both workers and businesses to understand and apply." Separately, a new report on FLSA litigation
highlighted the need to update the overtime exemptions. According to a study by Syracuse University, the federal courts are on track to field a record number (8,820) of wage-and-hour suits this year.