The NRCA has filed comments regarding the Notice to Proposed Rulemaking which will change the governing regulation around which employees are exempt for overtime pay under the Fair Labor Standards Act. Under the proposed rule the annual salary threshhold would increase to $55,068, a nearly 55% increase from the current threshhold of $35,568. Automatic increases would also be implemented every 3 years that would be tied to the 35th percentile of weekly earning of non-salaried, full time employees in the lowest wage reason of the U.S. Census. The NRCA is concerned that this could cause a drastic increase in labor costs and complience requirements while also reducing flexibility and wages for employees. The 55% increase is much greater than previous increases. The NRCA has urge the Departent of Labor to withdraw the rule, or substantially reduce the increase.
Source: NRCA, Department of Labor