The Partnership to Protect Workplace Opportunity, of which ABC is a steering committee member, created a grassroots toolkit for members to respond to the U.S. Department of Labor’s new overtime proposed rule. The grassroots portal allows you to send model comments directly to the DOL as well as a model letter to your senators and representative in Congress opposing the new proposed rule. The deadline to submit comments is no later than Nov. 7.

On Sept. 8, 2023, the DOL published a new proposed rule that would alter the “white collar” overtime exemption regulations applicable to executive, administrative and professional employees. Specifically, the proposal would significantly raise the minimum salary level needed to qualify as exempt.

Under the proposed rule, it is expected that the minimum salary threshold will be at least $55,068 (annualized). However, when the DOL promulgates the final rule, the agency claims it will use the most recent data then available. Thus, the DOL projects the minimum salary threshold to be $60,209 (annualized) in 2024—an increase of nearly 70% from the current $35,568 salary level.

The DOL also proposes to significantly raise the total annual compensation needed to qualify for exemption under the streamlined test for highly compensated employees from the current total annual compensation of $107,432 to $143,988.

Finally, the DOL proposes to automatically update the standard salary level and the HCE total annual compensation threshold every three years.

On Sept. 25, PPWO submitted an extension request to the DOL urging the agency to extend the Nov. 7 comment deadline by 60 days. Unfortunately, the DOL denied PPWO’s request. ABC will submit comments opposing the new rule by the deadline of Nov. 7 and ABC members are also encouraged to submit comments on regulations.gov.

To learn more about the rule’s proposed changes, see ABC general counsel Littler Mendelson’s analysis of the proposal. Also, see the DOL’s frequently asked questions about the proposed rule.

“ABC is disappointed that the DOL is moving forward with a proposed overtime rule since multiple industries, like construction, are still grappling with the lingering economic consequences of inflation, global supply chain disruptions, rising materials prices and workforce shortages, all of which push operational costs ever higher,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs, in a statement immediately following the DOL announcement.

In 2016, the Obama administration issued a final overtime rule that would have doubled the minimum salary level for exemption from $23,660 to $47,476 per year. ABC, along with several other business groups, sued the DOL in federal court and succeeded in blocking the rule from taking effect.