Small Business Legislative Council Submits Employee Overtime Comments to Dept of Labor

Last week, the Small Business Legislative Council (SBLC), in which PMAA is a contributing board member, submitted comments on the Trump Administration’s new proposed overtime rules for certain white-collar employees (executive, administrative, professional, and computing positions) and highly compensated employees.

Similar to the Obama-era efforts, the new Proposed Rule presents changes to the regulations that govern how employers can structure their relationship with their employees, which in turn, can impact a business’s bottom line. Fortunately, the new proposed rule is less burdensome on small businesses. In general, the Fair Labor Standards Act (FLSA) requires employees be paid one and a half times their regular rate of pay for all hours worked over forty hours in a given workweek. Under the FLSA, there are, however, certain exemptions. Employees who fall under one of these exemptions do not have to be paid overtime.

The PMAA Board of Directors voted recently to support the Trump Administration’s proposed white-collar exemption salary threshold of $35,308 per year ($679 per week). PMAA also supported the proposed rule’s intent to permit employers to satisfy the salary requirements through non-discretionary bonuses and incentive pay. PMAA opposed the proposed increase to the highly compensated exemption salary threshold and opposed any further efforts to add automatic future increases to the final rule. Click here to read the comments.

From PMAA