As the Department of Labor (DOL) works to finish its overtime rule by summer, rumors are circulating that the agency might raise the salary threshold for overtime eligibility by less than it had originally proposed.
It remains unclear at this time what the final overtime rule will look like. However, Politico reported that the agency is considering raising the salary level at which employees are eligible for overtime to $47,000. The agency had proposed raising it to $50,440 in the proposed rule.
The final regulation could be issued as early as this month.
Raising the threshold by less than what was originally proposed represents a nod to Republicans and the business community who have criticized the rule for threatening jobs and potentially forcing employers to cut hours for salaried employees.
The figure still marks a 99 percent increase over the current threshold of $23,600, however, and fails to reflect regional differences in salaries.
In September 2015, NATSO filed comments in response to the agency’s proposed rule urging DOL to reflect the realities of regional economies in its final rule.
NATSO also argued that converting a large number of employees to nonexempt status will lead to unintended consequences that ultimately will harm the very employees that the Department is seeking to protect.
NATSO urged the agency to refrain from making changes to the duties test, which currently accommodates the fact that many upper level managerial and executive personnel at truckstops and travel plazas occasionally perform non-exempt duties.
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