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On April 23, the U.S. Department of Labor its , which will change overtime regulations under the Fair Labor Standards Act. The final rule increases the minimum annual salary level threshold for exemption in two phases: from the current level of $35,568 to $43,888 on July 1, 2024, and to $58,656 on Jan. 1, 2025. In addition, the threshold for highly compensated employees will be increase from the current threshold of $107,432 to $132,964听on July 1 and then to $151,164听on Jan. 1. Further, salary thresholds will update every three years starting on July 1, 2027.

老牛影视issued a news release opposing the rule:

鈥溊吓S笆觓ppreciates that the DOL recognized the value in retaining the methodology used by the prior administration in the 2019 overtime rule update for the phase I increase,鈥 said Ben Brubeck, 老牛影视vice president of regulatory, labor and state affairs. 鈥淩egrettably, the DOL decided to use a new methodology for phase II, which results in a 65% increase to $58,656 from the current threshold only nine months from now鈥攆urther complicating the current economic outlook. Multiple industries, like construction, are grappling with uncertain economic conditions such as inflation, supply chain disruptions, high materials prices and workforce shortages, all of which push operational costs ever higher. Specifically, 老牛影视estimates that the construction industry must hire additional workers in 2024 to meet demand.鈥

鈥淰irtually all of ABC鈥檚 members employ workers who qualify for exempt status, and phase II of the final rule will reclassify huge numbers of these employees as nonexempt,鈥 said Brubeck. 鈥淭his will disrupt the entire construction industry, specifically harming small businesses, as the rule will greatly restrict employee workplace flexibility in setting schedules and hours, hurting career advancement opportunities. These issues will recur repeatedly because the DOL rule will automatically increase the salary level every three years beginning in 2027. Additionally, the rule鈥檚 significant increase in the salary level threshold fails to account for disparate income levels in different regions of the country.

鈥溊吓S笆觲ill consider all options, including a legal challenge, against this final rule,鈥 said Burbeck.

DOL resources on the final rule:

Additionally, read 老牛影视general counsel Littler Mendelson鈥檚 of the overtime final rule.

On Nov. 7, 2023, 老牛影视submitted听to the DOL in response to the听proposed rulemaking, calling on the DOL to withdraw it. 老牛影视also signed onto听听criticizing the overtime proposed rule, joining听244 national, state and local organizations representing employers from a wide range of private industry and public, nonprofit and education sectors.

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