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Business and Policy Areas
Business and Policy Areas
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Higher Education Community Offers Comments on Overtime Rule

September 29, 2017

In a recent letter to the Department of Labor (DOL), NACUBO and 21 other higher education associations responded to the agency’s request for information (RFI) on the Obama administration’s overtime rule, which was recently struck down.

The RFI sought responses from employers to several questions related to determining exemptions for executive, administrative, and professional employees. The questions focused on potential DOL methodologies and options for setting salary levels for exemption from the overtime provisions of the Fair Labor Standards Act (FLSA).

The answers and comments offered in the September 25 CUPA-HR letter on behalf of the higher education community were based largely on data collected in an August 2017 survey of 334 chief human resource officers at both public and private institutions.

The letter urges DOL to increase the salary threshold, and to periodically update it to guard against abuses of the exemption. It urges the DOL to:

  • Update the salary threshold by applying the methodology used in 2004 to current salary data.
  • Make no changes to the duties test.
  • Prorate the salary threshold for part-time employees.
  • Allow the cost of employer-provided room and board to count toward the salary threshold.
  • Continue updating regulations through DOL’s practice of notice and comment rulemaking.

Contact

Mary Bachinger
Director, Tax Policy
202.861.2581
E-mail