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Business and Policy Areas
Business and Policy Areas
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Implementation of Overtime Proposal Could Cost Schools Millions

April 18, 2016

The University of Michigan supports an increase to the Department of Labor's (DOL) overtime wage threshold.  However, "trying to close that gap without adequate time for implementation is equally problematic and could be counterproductive to fair overtime pay and job security," said Laurita Thomas, University of Michigan's associate vice president for human resources at a March 29 field hearing of the House Subcommittee on Workforce Protections. Thomas is a CUPA-HR board member and will speak on this topic at the NACUBO 2016 Annual Meeting.

The hearing was organized to discuss how current government regulations impact workers and job creators in Michigan, but all witnesses took the opportunity to comment on DOL's proposed overtime rule. Thomas provided a snapshot of the impact the proposal will have on higher education: The rule will impact 3,100 employees critical to University of Michigan's mission, with implementation costs as high as $34 million.

"For the University of Michigan, the largest higher education employer in the state, the changes would affect more than 3,100 people in roles critical to our missions, including research fellows and lab staff, student housing officers, admissions recruiters, academic advisors, financial aid administrators, social workers, clinical dietitians, clinical research coordinators, and fundraisers," Thomas explained in her testimony.

The White House Office of Management and Budget is currently reviewing the DOL proposal and meeting with affected stakeholders. NACUBO recently joined a diverse group of nearly 100 associations in signing a letter of support for S. 2707/H.R. 4773, The Protecting Workplace Advancement and Opportunity Act, that requires DOL to more closely examine the impact of possible changes before proceeding with a final rule. The bill does not prevent an increase in the salary threshold.

RESOURCES

Field hearing video archive, statements and testimony
NACUBO:  Overtime Rule Draws Scrutiny
NACUBO:  Proposed Overtime Pay Salary Threshold Is Too High, Higher Ed Groups Say

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