ISSAlert April 15, 2019
ISSA continues to monitor proposed changes to the overtime rules. The U.S. Small Business Administration’s Office of Advocacy is hosting a series of roundtable discussions on to gather input from small businesses about the potential impact of the U.S. Department of Labor’s proposed rule which would increase the minimum salary for the white-collar overtime exemption from US$23,660 annually to $35,308 annually. Under the proposal, workers making under $35,308 annually would be eligible for overtime pay. The first roundtable meeting was in Tampa, FL, on April 4. The second was in Washington, D.C., on April 11 and the final one will be in Mobile, AL, on April 30.
ISSA attended the Washington, D.C., session. During the meeting, representatives from the Office of Advocacy and the Department of Labor asked for input on the impacts of the proposed rule, as well data on wages, bonus structures, and regional costs of living. Some organizations commenting at the meeting stated that the salary threshold is too high and that it does not accurately account for those who work on commission. Others stressed the need for greater clarity. A representative from the National Association of Homebuilders said that the regulation is too complicated for small businesses to navigate. A spokesperson for the National Automobile Dealers Association said that the regulation could drive more businesses to hire people as independent contractors, rather than employees. Some organizations said that they are still gathering input from their members about the potential impacts of the rule.
In response to questions, Department of Labor officials said it hopes to finalize a rule by January 2020. Department staff also said that it does not plan to set different salary thresholds based on business size.
ISSA continues to monitor and weigh in on the proposed overtime rule and will keep you updated. For additional information, or questions regarding the proposed overtime rules, other issues, or ISSA’s advocacy efforts, please contact ISSA Director of Government Affairs John Nothdurft at [email protected].