ISSA Submits Comments on Overtime Regulations

May 21, 2019 ISSA Submits Comments on Overtime Regulations

On May 20, ISSA submitted comments in response to the U.S. Department of Labor’s (DOL) Notice of Proposed Rulemaking (NRPM) regarding overtime regulations and the salary threshold that helps define which workers are eligible for overtime pay. 

In the comments submitted to DOL, ISSA praised the department for formally rescinding “the December 2016 final rule and reverting to the 2004 methodology in setting the salary threshold for determining exempt status, yielding a standard salary threshold of US$35,308 per year or $679 per week.” This lower level national salary threshold will minimize the impacts on ISSA members. In our 2015 comments to the DOL we pointed out these regulations would cost our members, “$100,000 to well over $750,000 annually depending on the size of the company and the number of employees.”

Fortunately, the 2019 proposed rules are less burdensome than the previous iteration, but they could still be problematic for some ISSA members. As a result, ISSA suggested additional changes to the proposed rules including, “the DOL uncap the percentage of salary threshold that can be satisfied by commissions and nondiscretionary bonuses and that it harmonize the types of compensation that can be considered as satisfying the salary thresholds with the regular rate regulations. Additionally, ISSA recommends addressing the reality that cost of living and wages can be vastly different based on location. Finally, we ask that the Department provide a 12-month period for employers to implement a new rule.”

Since 2014, when U.S. President Barack Obama first directed the DOL “to modernize and streamline the existing overtime regulations” ISSA has been active in pushing for more reasonable overtime rules than proposed. ISSA appreciates the many member companies that provided feedback regarding the impact of these changes. The DOL is expected to finalize a rule by January 2020.  

To view the comments in their entirety, please click here. For additional information, or questions regarding the proposed overtime rules, other issues, or ISSA’s advocacy efforts, please contact John Nothdurft, ISSA Director of Government Affairs at 847-982-3453 or at [email protected].