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Proposed Overtime Rule Draws 145k+ Comments
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With about one week to go in the open comment period, the Department of Labor has received more than 145,000 comments on its proposal to increase the number of salaried workers who are eligible for overtime pay. 

The deadline for comments on the Department of Labor’s overtime rule is Sept. 4. ASAE has already submitted its comments 
and encourages other associations to use these comments as a model for their own, or submit their own separate concerns before the deadline. 

Under current DOL regulations – last updated in 2004 – employers are required to pay all employees time-and-a-half for any hours they work in excess of 40 hours per week if they make less than $23,660 per year, regardless of the employee’s job responsibilities. The proposed rule would more than double that salary threshold so that any employee earning a salary of less than $50,440 per year would become eligible for overtime pay. 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. 

ASAE has heard from many association professionals who are concerned that some of their exempt employees will now be eligible for overtime under the new salary threshold or will have to be switched to hourly pay. Many association employees are classified as exempt from overtime eligibility because they are paid on a salary basis at an annual rate of at least $23,660 and because their primary duties meet the test for the executive, administrative or professional (“EAP”) exemptions under the Fair Labor Standards Act. 

While the rule won’t likely be finalized for months, the change is forcing companies to consider keeping closer tabs on hours worked by overtime-eligible employees, including how to handle work done out-of-office, such as responding to emails in the evening or working at a conference over a weekend. 

For a summary of ASAE’s concerns and to read more about the DOL’s proposed rule, please visit the Power of A site. To submit your own organization’s comments to DOL, click here.

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