Doubling of Overtime Exemption Salary Test Proposed - Open for Public Comment

The Labor Department has proposed to more than double the salary level for workers in so-called "white collar" jobs to be exempt from overtime.  The proposal will be open to public comment in the next week or ten days.  See instructions below for submitting comments that will be available for 60 days. When new regulations are finalized, it is likely they would take effect sometime in 2016. 

The proposal (http://www.dol.gov/whd/overtime/NPRM2015/OT-NPRM.pdf) would set a weekly salary level of at least $970 ($50,440 per year) for employees classified in executive, professional or administrative jobs to be exempted from overtime pay if they work more than 40 hours in a week.  The current level is $455 per week ($23,660 per year).

The proposed salary level, which as proposed would increase in future years as wages in the general economy rise, would especially hit retail and chain restaurant employers the hardest, since many pay store managers and assistant store managers less than the proposed new salary threshhold.

Left untouched -- at least in the current proposal -- is the definition of what constitutes an executive, professional or administrative job, although the Labor Department has asked for public comment on whether -- and, if so, how -- the definitions should be modified.

NAMM is working closely with the National Retail Federation to analyze the impact of the proposed rule change.

Instructions for submitting comments:

You may submit comments, identified by Regulatory Information Number (RIN) 1235-AA11, by either of the following methods: Electronic Comments: Submit comments through the Federal eRulemaking Portal http://www.regulations.gov. Follow the instructions for submitting comments. Mail: Address written submissions to Mary Ziegler, Director of the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue, N.W., Washington, D.C. 20210. Instructions: Please submit only one copy of your comments by only one method. All submissions must include the agency name and RIN, identified above, for this rulemaking. Please be advised that comments received will become a matter of public record and will be posted without change to http://www.regulations.gov, including any personal information provided.