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NSSGA opposes new rule from Department of Labour

Published by , Assistant Editor
World Cement,

The Obama administration has continued its regulatory barrage against businesses today, as the US Department of Labour announced a final rule that more than doubled the salary threshold to qualify for overtime pay.

From 1 December, all workers, including those in the aggregates industry, can qualify for overtime with salaries of US$913 per week, or US$47 476 annually for a full-year worker. This is more than double the currently salary threshold of US$23 660, although is still below the Labour Department’s proposed threshold of US$50 440.

Employees above the salary threshold may still be eligible for overtime pay if their duties are not exempt under the executive, administrative or professional standard. The rule does not affect hourly employees, who must already be paid overtime.

The Labour Department predicts that this rule extends the right to overtime pay to 4.2 million workers who are currently exempt, and increases existing overtime protections for 5.7 million white collar and 3.2 million blue collar salaried employees whose entitlement to overtime pay will no longer rely on the application of the EAP duties test.

Another provision in the rule also mandates that the Labour Department index future salary thresholds to inflation every three years. Future updates to overtime salary thresholds will automatically occur every three years, as of 1 January 2020.

A coalition of 17 business groups has written to Congress and urged lawmakers to block the overtime change. These organisations claim that companies may switch some salaried workers to hourly positions to afford the new threshold and as a result workers may be assigned fewer hours and have to clock in and out, instead of the current flexibility the enjoy as salaried employees. NSSGA will work with like-minded industries and organisations to block the implementation of this rule.

Adapted from press release by

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