ABC, as a member of the Partnership to Protect Workplace Opportunity, called upon the U.S. Department of Labor’s Wage and Hour Division to extend the implementation date of the first increase to the minimum salary threshold under its new final rule altering the overtime regulations under the Fair Labor Standards Act.

“WHD is providing the regulated community with only two months to analyze the rule, determine what changes to their operations and payrolls will be necessary, explain to the impacted workers how and why their pay, titles, or workplace responsibilities will change, and then implement those changes,” the letter states. “This is an arbitrary and burdensome timeline for the regulated community to meet, especially smaller businesses that do not have the resources to make such changes quickly.” PPWO is requesting that the WHD extend implementation from its current date of July 1, 2024, to at least Sept. 1, 2024. Read the PPWO’s statement about the letter.

The PPWO also created a grassroots toolkit to urge Congress to call for a delay in implementation of the first increase. The grassroots portal allows you to send a model letter directly to Congress educating them about the difficulties of the current effective date, but you can also edit the letter as you see fit. 

On April 23, the DOL issued its final rule on overtime, which will change overtime regulations under the Fair Labor Standards Act. The final rule increases the minimum annual salary level threshold for exemption in two phases: from the current level of $35,568 to $43,888 on July 1, 2024, and to $58,656 on Jan. 1, 2025. In addition, the threshold for highly compensated employees will be increase from the current threshold of $107,432 to $132,964 on July 1 and then to $151,164 on Jan. 1. Further, salary thresholds will update every three years starting on July 1, 2027. Learn more about the final rule and read ABC’s press release opposing it.

ABC members and chapter staff are encouraged to register for an ABC webinar on May 30 with Littler Mendelson Shareholder Jim Paretti to gain insight on the overtime final rule.