Members of Congress Express Concerns about DOL’s Proposed Overtime Exemption Rule

According to INARF’s national partner ACCSES, 108 members of Congress sent a letter on February 9 to Secretary of Labor, The Honorable Thomas E. Perez, expressing serious 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. 

As INARF reported last July, the Department of Labor (DOL) released a proposed rule that would require businesses to pay overtime wages to employees making $50,440 or less per year, which would be a 113 percent increase over the current threshold. 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. More than 250,000 organizations submitted comments on the proposed rule to DOL last year. ​

​In the letter, 108 members of Congress led by Reps. Cresent Hardy (R-NV) and Steve Knight (R-CA) urged DOL to reconsider moving forward with the rule as drafted, reiterating ASAE’s argument that it would have a disproportionate impact on small businesses and nonprofits, particularly in certain geographic areas. The letter also raises concern about DOL’s plan to possibly change the duties test, which is a main component used in determining whether an employee is exempt from the Fair Labor Standards Act (FLSA). In its proposed rule last year, DOL asks whether a percentage-of-time rule should be applied to the primary duties test. DOL did not provide a concrete regulatory proposal regarding the duties test, but merely asked for comment on possible changes. 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 July 2016. 

INARF applauds Indiana Congresswoman Susan Brooks, Congressman Larry Bucshon, Congressman Luke Messer, Congressman Todd Rokita, and Congresswoman Jackie Walorski for signing on to the letter and expressing their concerns about the proposed rule to DOL. ​