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Business and Policy Areas
Business and Policy Areas
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New Overtime Rule Expected Mid-May

May 2, 2016

Media outlets reported last week that, according to sources close to the discussions, new Department of Labor (DOL) overtime rules would be released by May 15 and that the new overtime wage threshold would be set at $47,000 per year, an adjustment from the $50,440 threshold proposed by DOL in an earlier draft rule.

It is likely the new threshold would become effective in September of this year, followed by an automatic, annual increase linked to the consumer price index that takes effect, likely in 2018. The Office of Management and Budget review process is still underway and is expected to end on May 10. 

NACUBO, together with 139 national organizations and 201 regional, state, and local organizations, joined an effort led by the Partnership to Protect Workplace Opportunity (PPWO) in sending letters on April 18 urging members of Congress to support legislation that would require the Labor Department to conduct a detailed economic analysis before making dramatic changes to federal overtime pay requirements.

The letters state, "The bill does not prevent an increase in the salary threshold; it merely requires the Department of Labor to more closely examine the impact of possible changes before proceeding with a final rule."

Also last week, PPWO released a video featuring nonprofits, higher education, small businesses, and employees who would be adversely affected by DOL's proposed rule change for overtime.

The College and University Professional Association for Human Resources (CUPA-HR) is seeking cost figures and data on the number of employees affected if the threshold is set at $47,000 per year. If your institution is able to provide estimates to help with this effort, please contact NACUBO at advocacy@nacubo.org.

RESOURCES

NACUBO:  Implementation of Overtime Proposal Could Cost Schools Millions
NACUBO:  Overtime Rule Draws Scrutiny
NACUBO:  Proposed Overtime Pay Salary Threshold Is Too High, Higher Ed Groups Say

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Liz Clark
Director, Federal Affairs
202.861.2553
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Mary Bachinger
Director, Tax Policy
202.861.2581
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