Legislative Affairs

DOL/FLSA Overtime Regulations Advocacy Update

  • 1.  DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-18-2016 11:49

    Good morning,

    A while ago, ASBOUSA posted a blog on the Department of Labor's (DOL) proposed changes to overtime regulations under the Fair Labor Standards Act (FLSA), including raising the current salary threshold for overtime pay from $23,600 to $50,400. If DOL raises the minimum salary threshold, then any public school staff who are currently exempt executive, administrative, and profession employees (excluding teachers) will need to be reclassified to hourly employees if they make less than $50,400 (which will still have major implications for school budgets and operations.)

    In response, ASBO International signed onto a letter to Congress in opposition to the proposed regulations. We also joined the Partnership to Protect Workplace Opportunity (PPWO) Coalition to collaborate with other education, non profit, association, and public sector organizations to advocate for better standards that promote maximum flexibility in structuring employee hours, career advancement opportunities for employees, and clarity for employers when classifying employees. 

    Thanks to the coalition's advocacy efforts, yesterday, Senators Tim Scott (R-SC) and Lamar Alexander (R-TN) and Representatives Walberg (R-MI) and John Kline (R-MN) introduced the Protecting Workplace Advancement and Opportunity Act (S 2707 and HR 4773), which would require DOL to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employers before issuing any final rule.The coalition strongly supports the legislation, and the press release may be found here. (Additionally, the Senate Health, Labor, Education, and Pensions [HELP] Committee press release is available here, and the House Education and the Workforce Committee press release here.)

    DOL has already sent the overtime rule to the Office of Management Budget's (OMB) Office of Information and Regulatory Affairs (OIRA) for their review. OIRA will review the draft and proposed regulatory actions before the final regulation is issued. Please stay tuned to the Legislative Affairs Community for further updates.

    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    ------------------------------
    blank placeholder


  • 2.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-22-2016 08:40
      |   view attached

    Good morning,

    The Partnership to Protect Workplace Opportunity (PPWO), the coalition ASBO International joined in opposition to the Department of Labor's (DOL) proposed overtime regulations to the Fair Labor Standards Act (FLSA), issued the following alert:

    "Now that the overtime rule is at the Office of Management Budget's (OMB) Office of Information and Regulatory Affairs (OIRA), if you haven’t already, please reach out to OMB to schedule a meeting with their office. OMB is particularly interested in receiving cost implications of the overtime proposal as well as how many employees may need to be reclassified as a result of the rule. This is the last opportunity we have to weigh in with the Administration and explain the challenges for employers and employees. The PPWO has also requested a meeting with the OMB.

    Outside parties may provide written comments to the OIRA Administrator on a rule that is under review. If a rule is at OIRA for review, interested parties can provide comments by email at OIRA_submission@omb.eop.gov. In the email please specify the name of the rule and the regulatory identification number (RIN) RIN 1235--AA11 as specified in the docket for the rule on www.reginfo.govOutside parties may also request a meeting with the Administrator, or his/her designee. If you would like to request a meeting to provide views on a rule being reviewed at OIRA, email: Mabel_E._Echols@omb.eop.gov or call 202-395-6880 to schedule." 

    Additionally, please see the attachment which has a summary of HR 4773 / S 2707, the "Protecting Workplace Advancement and Opportunity Act." These are two companion bills that the PPWO coalition worked with Senators Tim Scott (R-SC) and Lamar Alexander (R-TN) and Representatives Walberg (R-MI) and John Kline (R-MN) on, which would require DOL to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employers before issuing any final rule.

    Thank you. 

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA

    Attachment(s)

    blank placeholder


  • 3.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-29-2016 09:19

    Good morning,

    The Partnership to Protect Workplace Opportunity (PPWO) shared several resources with us that explain how the Department of Labor's proposed overtime (OT) regulations will impact K-12 schools/districts.

    • This letter, sent to DOL by the National Alliance for Public Charter Schools (NAPCS), explains the impact of the rules from a charter school perspective. Many of the points raised are relevant to non-charter schools as well, such as the additional financial burden the rules will put on schools, and the negative effect that higher OT costs will have on school employment, operations, and staff reductions.

    • This EdWeek article also addresses how the new OT rules would affect charter schools, as well as preschools and tutoring programs. It highlights unintended consequences, "with the new rule potentially forcing businesses to eliminate employee flexibility, downsize staff, or reduce base pay." The article also notes more complex effects in the education sector. Summer school, tutoring, and mentoring program staff who work irregular hours may have to be reclassified under the rule. More effort and resources would have to be spent on systematically reclassifying employees earning under $50,440 and for hiring legal counsel to navigate the new rules. 

    • This new PPWO fact sheet describes how the rules will impact nonprofits, students, and local governments. "Nonprofits, schools and municipal governments throughout the country face increased administrative and payroll costs and rigid restrictions on staffing as salaried employees are moved to hourly positions. Each organization’s overhead costs will substantially increase, as it has to track and limit employee hours. In the face of already dwindling budgets, this will decrease or eliminate the number and frequency of services provided to people in need, students, and taxpayers." The fact sheet also provides anecdotes from organizations affected by the rules, including the National Association of Independent Schools (NAIS), National Business Officers Association (NBOA), and the NAPCS. NAIS and NBOA noted that in a joint member survey, schools noted that an average of 22% of nonfaculty/currently exempt staff would be affected by the OT rules.


    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA

    blank placeholder


  • 4.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-29-2016 09:49
    Elleka, did ASBOI take a position on this?  or any other national public education organization?  And who is behind the Partnership to Protect Workplace Opportunity?

    Also what is the status of this new rule? Where is it in the decision making process?  And can we get more specific analysis on how it would impact public schools?

    Michael J. Borges
    Executive Director
    New York State Association of School Business Officials
    453 New Karner Road
    Albany, New York 12205
    (518) 434-2281, ext. 108
    (518) 434-1303 fax
    mborges@nysasbo.org





    blank placeholder


  • 5.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-29-2016 13:30
    Edited by Elleka Yost 03-29-2016 13:31
      |   view attached

    Hi Michael,

    ASBO International is a member of the Partnership to Protect Workplace Opportunity coalition, you can learn more about PPWO on their website here, which also lists other member organizations. Most members are from the business, higher education, and labor sectors, and there are many associations representing HR, education, nutrition, and other industries. AASA-The School Superintendents Association has informed us that they are currently discussing joining the coalition as well.

    Generally speaking, teachers, principals, and superintendents aren't affected by the OT rule because of the Fair Labor Standard Act's “learned professional” and "administrative" exemptions; however as noted in the previous post, a NAIS/NBOA survey noted that on average, 22% of non-faculty/currently-exempt school staff would be affected by the OT rules. So not all K-12 stakeholders are affected, this is a mixed bag, thus not all K-12 stakeholders and organizations see this as an issue that needs addressed. 

    The only official positions ASBO International has taken pertains to the specific DOL letter we signed with PPWO, and the PPWO's overall mission statement:

    "The Partnership’s members believe that employees and employers alike are best served with a system that promotes maximum flexibility in structuring employee hours, career advancement opportunities for employees, and clarity for employers when classifying employees.The Partnership was formed in 2014 in response to President Barack Obama’s directive to the Department of Labor to “update and modernize” the Section 541 FLSA overtime regulations. The Partnership will be responding to the proposed changes to the overtime regulations with a careful and thorough analysis based on the principle that any changes need to work for both employers and employees."


    The DOL letter asked the following:

    • For Congress to request the DOL reconsider the overtime rule and make adjustments in accordance with the comments they have received.
    • For Congress to consider the following:
      • While an increase to the salary level is due to ensure the exemptions remain relevant and are not abused, DOL’s proposed increase is simply too high and would have significant adverse consequences on public sector employers.
      • The rule would require employers to track exactly how much time an employee spends performing specific duties in order to qualify as exempt. This is of concern because of the way DOL is suggesting it without actual proposed regulatory language and because of the difficulties it would impose on employers.
      • Any salary threshold increase should be done gradually, over a substantial number of years, to ensure a smooth transition and mitigate the significant budgetary impact from occurring suddenly.


    Education organizations who signed the DOL letter include:

    AASA, The School Superintendents Association
    American Association of Community Colleges
    American Association of State Colleges and Universities
    American Council on Education
    Association of American Universities
    Association of Public and Land-Grant Universities
    Association of School Business Officials International (ASBO)
    National School Boards Association
    The College and University Professional Association for Human Resources (CUPA-HR) (along with several of its state chapters)


    As for the status of the rule: The DOL letter says, "The Department of Labor announced last November that it plans to finalize the rule in July 2016, with compliance required later this year." DOL submitted the rule to the Office of Management Budget's (OMB) Office of Information and Regulatory Affairs (OIRA) for review on March 14. OIRA will review the draft and proposed regulatory actions before a final regulation is issued. A final rule could be published as early as 30 days from that date (April 14), but could take longer; there is no definitive deadline to my knowledge. 

    At this time, outside parties may provide written comments to the OIRA Administrator on this rule by email at OIRA_submission@omb.eop.gov. In the email, please specify the name of the rule and the regulatory identification number RIN: 1235-AA11. Outside parties may also request a meeting with the Administrator, or his/her designee. If you would like to request a meeting to provide views on a rule being reviewed at OIRA, email: Mabel_E._Echols@omb.eop.gov or call 202-395-6880 to schedule. The PPWO is already scheduling a meeting, as we learn more information on the results of the meeting, we will post updates here.

    As for more information about how the OT rule will affect schools: The only other information I have received is attached. PPWO provided specific examples of how the rule will affect PK-12 schools in regards to administrative professionals, emergencies, and Head Start programs.

    I hope this is helpful. Please let me know if you have further questions.     

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA

    Attachment(s)

    blank placeholder


  • 6.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-29-2016 14:17
    Great info thanks.  Last question, would this apply to business officials? Are we covered by administrative exemption?

    Generally speaking, teachers, principals, and superintendents aren't affected by the OT rule because of the Fair Labor Standard Act's "learned professional" and "administrative" exemptions; h

    Michael J. Borges
    Executive Director
    New York State Association of School Business Officials
    453 New Karner Road
    Albany, New York 12205
    (518) 434-2281, ext. 108
    (518) 434-1303 fax
    mborges@nysasbo.org





    blank placeholder


  • 7.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 03-29-2016 14:53

    Michael,

    It is my understanding that school business officials would fall under the "administrative exemption" for the new overtime (OT) rule provided that the employee satisfies the Department of Labor's newly proposed salary test/threshold and the administrative duties test as outlined under the Fair Labor Standards Act (FLSA).

    The new OT rule would change the salary threshold "from $455 a week (the equivalent of $23,660 a year) to about $970 a week ($50,440 a year) in 2016." The "administrative duties" test is explained in this FAQ, questions #3, #7, #13, and #16 in particular. Also see this fact sheet on the administrative exemption for more information. 

    Finally, this K12 HR Solutions blog provides supplemental FLSA information and resources for K-12 employees.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA

    blank placeholder


  • 8.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 04-04-2016 08:33

    Good morning,

    K12 HR Solutions provided us with several resources on the Department of Labor's (DOL) proposed overtime (OT) rule as it pertains to school district staff. If you have questions about whether specific employees qualify as exempt or nonexempt, these documents may answer your questions.

    1. A Quick Guide to the Fair Labor Standards Act (FLSA) from K12 HR Solutions. This document has guidelines on exempt versus nonexempt employees. It explains that, "Superintendents, assistant superintendents, treasurers/chief school business officials, and most directors generally are covered by" the executive employee exemption under FLSA. Meanwhile "Principals, assistant principals, coordinators, and supervisors generally are covered" by the administrative exemption.

    Common district staff that are non-exempt, and would thus be subject to the OT rule if it is updated are: aides, paraprofessionals, some clerks and secretaries, maintenance workers, school bus operators, cafeteria workers, custodians, and others.

    2. FAQs that School Districts Have Regarding the FLSA. This document features more than 20 frequently asked questions (FAQs) about the FLSA for school district staff. It addresses everything from special education staff and minimum wage students who work after school hours, to compensation for noncertified employees and school bus drivers, to how to calculate overtime pay for employees with special circumstances.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA

    blank placeholder


  • 9.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 04-15-2016 10:55

    Good morning,

    Regarding ASBO International's advocacy activities via the Partnership to Protect Workplace Opportunity (PPWO), we have formally joined the PPWO in endorsing/co-sponsoring two companion bills in the House and Senate that would require the Department of Labor (DOL) to conduct an economic impact analysis of its proposed overtime pay (OT) rule under the Fair Labor Standards Act (FLSA).

    As a reminder, the bills were introduced by Senators Tim Scott (R-SC) and Lamar Alexander (R-TN) and Representatives Walberg (R-MI) and John Kline (R-MN), and are entitled, the "Protecting Workplace Advancement and Opportunity Act," (S 2707 and HR 4773). The original PPWO press release about the bills can be found here, the Senate Health, Labor, Education, and Pensions (HELP) Committee press release is available here, and the House Education and the Workforce Committee press release is here.

    Attached are the letters of support for each version of the bill, and a list of current cosponsors of the bills. 

    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    United States

    blank placeholder


  • 10.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 04-19-2016 08:59
    Edited by Elleka Yost 04-19-2016 08:59

    Good morning,

    The Partnership to Protect Workplace Opportunity (PPWO), the coalition ASBO International joined in opposition to the department of Labor's (DOL) proposed overtime (OT) rule, was featured in The Business Journals yesterday for its advocacy activities regarding the two House and Senate bills to require DOL to conduct an economic impact analysis before issuing a final OT rule. As of now, analysts expect a final rule will be issued in July if Congress does nothing to stop it beforehand. 

    PPWO reports that more than 300 national and regional organizations signed on to support the legislation, "The Protecting Workplace Advancement and Opportunity Act," see the full press release about the letters here. PPWO says the letters "are supported and co-signed by representatives of nonprofits, institutions of higher education, schools, cities and counties and small and large businesses across the country, all of which are concerned about the unintentional damage DOL’s proposal would cause to workers, employers, and the U.S. economy." If you'd like to learn more about how the OT rule would affect students and schools, read this USA Today op-ed

    Finally, PPWO says that the Senate Small Business Committee will hold a hearing, "An Examination of the Administration's Overtime Rule and the Rising Costs of Doing Business" in mid-May (final date is TBD; it was postponed from its original April 21 date). The committee has two senators who are cosponsoring the Senate OT analysis bill (S. 2707), while the remainder have yet to make a decision. If you would like to contact committee officials to cosponsor the bill, please email me at eyost@asbointl.org, and I'd be happy to provide you with the relevant information to do so.

    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    United States

    blank placeholder


  • 11.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 05-06-2016 12:09
    Edited by Elleka Yost 05-06-2016 12:11

    Good morning,

    We have several updates regarding the Department of Labor's (DOL) proposal to change the overtime (OT) pay exemption rule under the Fair Labor Standards Act (FLSA). 

    • April 28, the House Small Business Committee's Republican members urged the White House Office of Management and Budget's (OMB) Office of Information and Regulatory Affairs (OIRA) to reject the DOL/FLSA overtime rule. (Learn more.)

    • May 4, The Hill published an article which outlines the progress for the OT rule so far, and mentions advocacy activities from the Partnership to Protect Workplace Opportunity (PPWO) coalition, of which ASBO International is a member. Here are the highlights:

      • DOL has received more than 270,000 comments on the rule. OIRA has held 22 meetings on the OT proposal in April, and has many more planned this month.

        • PPWO met with OIRA, and argued the OT rule would have unintended consequences such as forcing employers to raise salaries above the proposed $50,440 a year to avoid the additional costs of overtime, reclassifying workers from salaried to hourly (i.e., demotions), spending more time/resources on tracking hourly employees at the expense of being able to provide better services, etc. "The fact that the overtime threshold is a 113 percent increase is too much too fast... The agency is moving to the 40th percentile of earnings for all full-time salaried workers when recent increases have only been in the 10th percentile.” 

      • Rumors are that the Obama Administration and DOL may be willing to lower the threshold from $50,440 a year to $47,000 instead. PPWO and other businesses argue that's not enough to make a major difference. Insiders expect DOL/OIRA to release the final rule by May 16 to avoid it being overturned by the Congressional Review Act (CRA) under the next president.

        • The CRA allows lawmakers 60 legislative days to pass a resolution to overturn the rule. If lawmakers aren't in session for 60 more legislative days before adjourning for their final session, the clock will reset and the new Congress will have 60 legislative days to act. Republicans are banking on winning the presidency to use the CRA to overturn the rule under the next administration. 

        • Yesterday, POLITICO confirmed these rumors. A final rule is expected next week now that Donald Trump is expected to be the GOP presidential nominee. The rule would lower the threshold to $47,000 and "index the salary threshold thereafter to either the 40th percentile or to the Consumer Price Index for all urban consumers." PPWO is currently advocating for more time to implement the OT rule. Once a final rule is issued, employers will have 60 days to comply, but PPWO and other organizations are asking for "upward of a year to comply with the rule."


    Please stay tuned to the Legislative Affairs Community for further updates. Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    United States

    blank placeholder


  • 12.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 05-18-2016 15:29

    Good afternoon,

    Today the Department of Labor (DOL) issued a final rule for overtime pay provisions under the Fair Labor Standards Act (FLSA). Here are the highlights.

    DOL’s final overtime pay rule would...

    • Raise the FLSA overtime salary threshold to $47,476 (or $913/week).

    • Keep categorical exemptions and duties tests as they currently are.

    • Automatically increase the salary threshold every three years starting in 2020 to keep up with inflation costs (January 1, 2020 would reflect the first increase, to $51,000).

    • Take effect Thursday, December 1, 2016 (which means that salary adjustments for the new rule must be made for that entire pay week/period).


    Several Congress Republicans including Senator Lamar Alexander (R-TN), who oppose the rule, are looking at options for overturning it, including via a resolution under the Congressional Review Act (CRA). Please stay tuned to the Legislative Affairs Community for further updates, and an ASBOUSA blog on the new overtime pay rule's language, implications for school districts, and likelihood of being overturned.

    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    United States

    blank placeholder


  • 13.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 05-23-2016 14:23
      |   view attached

    Good afternoon,

    The final overtime rule was officially published in the Federal Register this morning, available here.

    For more details, including how the rule will affect school districts, the likelihood that Congress can overturn it, and advocacy activities related to revising/repealing the overtime rule, please see this ASBOUSA blog.

    Finally, the Partnership to Protect Workplace Opportunity (PPWO) shared the attached document with seven facts you should know about the rule.

    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    United States

    Attachment(s)

    blank placeholder


  • 14.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 06-13-2016 09:38
    Edited by ASBO USA 12-14-2016 10:30
      |   view attached

    Good morning,

    Last week, the Partnership to Protect Workplace Opportunity (PPWO) coalition, including ASBO International and other organizations, sent a letter to the House Committee on Education and the Workforce to thank committee members for holding a hearing about the new overtime rule issued by the Department of Labor (DOL). During the meeting, Congress members expressed concerns to the Secretary of Labor that DOL did not adequately consider public comments in opposition to the overtime rule because of unintended consequences the rule would have for the public sector, nonprofit organizations, small business, and other industries. The letter also urges Congress members to support HR. 4773, the Protecting Workplace Advancement and Opportunity Act, to encourage DOL to conduct an economic impact analysis of the overtime rule on the public sector, nonprofit organizations, small business, and other industries. Please see PPWO's letter attached to this post for more information and learn more about the overtime rule here.

    Also, two days before Congress' hearing on the DOL rule, Senators Lamar Alexander (R-TN) and Ron Johnson (R-WI) introduced a Congressional Review Act resolution, S.J.Res.34 to nullify DOL's overtime rule; the resolution had the support of 44 Senate cosponsors at the time the bill was introduced. Their joint press release says that the resolution, if passed, would also "prohibit the Administration from issuing a substantially similar rule without congressional approval." Stay tuned for more updates on this measure to override the overtime rule.

    In the meantime, you can contact your elected officials and urge them to support HR. 4773 and/or S.J.Res.34 if you want to delay or nullify the overtime rule until Congress/DOL learns more about its effects on school districts and elsewhere.

    Thank you.

    ------------------------------
    Elleka Yost
    Government Affairs & Communications Coordinator
    ASBO International
    eyost@asbointl.org
    Reston, VA
    United States

    Attachment(s)

    pdf
    6 9 16 PPWO Letter.pdf   1.09 MB 1 version
    blank placeholder


  • 15.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 07-25-2016 10:55
    Edited by ASBO USA 12-14-2016 10:32

    There are several new updates regarding overturning or easing requirements of the Department of Labor's (DOL) final rule to expand overtime pay for employees by December 1, 2016.

    • The Partnership to Protect Workplace Opportunity (PPWO) and ASBO International are continuing to advocate support of H.R. 4773 & S. 2707 the "Protecting Workplace Advancement and Opportunity Act." The companion bills would require DOL to conduct a study on the rule's effects on various industries before implementing it. On June 23, PPWO sent a letter thanking officials for holding a hearing on the rule's unintended consequences for public and small employers. And on July 13, PPWO sent a letter to House appropriators to thank them for adding a policy rider to overturn the rule in the House Labor, Health and Human Services, and Education (L-HHS-ED) Subcommittee draft spending bill for FY2017.

    • On July 14, the House Appropriations Committee approved the L-HHS-ED spending bill with the overtime policy rider included. The final House bill must now be reconciled with the Senate L-HHS-ED appropriations bill that did not include such a provision. Since Congress is on recess and won't have much time to pass all 12 appropriations bills before the fiscal year end when it reconvenes, a continuing resolution/omnibus bill will be likely to avoid a government shutdown. The question then is whether officials will include the rider in the final omnibus bill.
       
    • While Republicans are adamantly against the overtime rule, Democrats are split. On July 14, Rep. Kurt Schrader (D-OR) introduced a bill to "soften the impact" of the overtime rule via H.R. 5813, the "Overtime Reform and Enhancement Act (OREA)," which many Democrats are divided about. The bill would keep the salary threshold at $47,476 but phase it in over three years, with full implementation by December 1, 2019 (instead of this year). It would also remove the final rule's provision to update the salary threshold automatically every three years; OREA would instead require any increases to go through a rulemaking process to allow stakeholders to weigh in on future changes. ASBO International has not formally taken a position on this bill yet, as we are prioritizing our focus with PPWO on H.R. 4773 and S. 2707.


    To learn more/advocate on this issue, see the PPWO's template letters for general talking points and please stay tuned to this thread for more updates.

    ------------------------------
    ASBO USA
    asbousa@asbointl.org
    Reston, VA
    United States

    blank placeholder


  • 16.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 09-30-2016 11:30

    Congressional Republicans have continued to try to block, delay, and repeal the Department of Labor's (DOL) new overtime rule up until the election recess (which started today and goes through November 14). As mentioned in this thread, there are several bills in progress (H.R. 4773, S. 2707, a policy rider in the labor appropriations bill, and HR 5813) to delay or block the bill.

    However, there are some new initiatives worth noting:

    • This week's legislative update highlights a bill introduced by Rep. Tim Wahlberg (R-MI), H.R. 6094, the "Regulatory Relief for Small Businesses, Schools, and Nonprofits Act," which would delay the rule by six months to June 1, 2017. The House voted and passed the bill Wednesday on a 246-177 vote, and the Senate introduced a companion bill before leaving this week as well.

    • Sen. Lamar Alexander introduced the "Overtime Reform and Review Act" on Thursday, a Senate companion bill to H.R. 5813, to phase in the salary threshold increase over a period of five years (instead of immediately on December 1, 2016); prohibit a salary increase in 2017 to allow employers time to adjust to the rule and require the Government Accountability Office to study the impact of the rule during its first year of implementation; and prevent any automatic increases to the threshold (among other provisions). 

    • S. 3429, the "Small Business Survival from Disaster Act," which was introduced by Sen. David Vitter (R-LA) on Thursday as well. It would delay the rule's implementation by two years "in any state that has a major disaster declaration" until December 1, 2018. Learn more here.


    As of now, the White House has indicated President Obama likely will veto any bill that tries to repeal or delay the overtime rule, which means that a Congressional veto override would be required to ensure any of these initiatives pass. Please stay tuned to this thread for any further updates on the overtime rule.

    ------------------------------
    ASBO USA
    asbousa@asbointl.org
    Reston, VA
    United States

    blank placeholder


  • 17.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 11-02-2016 14:45

    The Partnership to Protect Workplace Opportunity (PPWO) coalition, which ASBO International is working with to mitigate the new overtime rule, hosted a phone conference with Senator Lamar Alexander (R-TN) about S. 3464, the "Overtime Reform and Review Act." Sen. Alexander is encouraging those who support delaying/mitigating the overtime rule to contact their senators to support S. 3464 while officials are on recess. As a reminder, the legislation would:

    • Phase in the overtime rule gradually over five years, increasing the overtime exemption salary threshold annually from 2016 through 2021.
    • Require the Department of Labor (DOL) to go through the normal rulemaking process to increase the annual threshold (instead of raising it automatically).
    • Exempt nonprofits, state and local governments (e.g., school districts) and other eligible employers from additional threshold increases for subsequent years until the federal government can prove the first threshold increase hasn’t adversely affected these employers.


    While ASBO International would prefer a full repeal of the rule, we acknowledge the current political climate is only conducive to passing a bill that phases the rule in. (President Obama expressed that any legislation to repeal the rule would be vetoed.) However, Alexander says some Democrats are open to phasing in the rule if their constituents support it, so S. 3464 is the best chance for mitigating the rule’s impact on employers. ASBO International will soon send a letter of support to the Senate, which will be shared here later. If you would like to join this initiative, please consider writing or calling your officials to urge them to pass S. 3464 as soon as Congress reconvenes.

    ------------------------------
    ASBO USA
    asbousa@asbointl.org

    blank placeholder


  • 18.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 11-28-2016 10:48

    In case you missed it, last Tuesday, a Texas federal judge issued an emergency injunction against the Department of Labor's (DOL) new overtime rule. The overtime rule would have taken effect December 1, but is now delayed. Employers should continue following current overtime regulations until further notice. 

    POLITICO reports that although the injunction is temporary, Judge Amos Mazzant's decision "signaled a strong likelihood that he'll eventually side with 21 state attorneys general and a coalition of business groups that sued to block the regulation." The Department of Justice (DOJ) said in a written statement that it is reviewing the court's decisions and considering next steps. Meanwhile, Mazzant said that the DOL exceeded "its delegated authority and ignored Congress's intent by raising the minimum salary threshold such that it supplants the duties test," under its overtime rule.

    POLITICO also notes that the injunction, or "regulatory timeout" should allow Congress time to vote and stop the regulation once and for all and "let the incoming Trump administration create a more realistic and workable overtime solution" for employees and employers alike. However, supporters of DOL's rule are planning to appeal the court's decision to see if the rule will be upheld. For more coverage, see this article from The Hill.

    ------------------------------
    ASBO USA
    asbousa@asbointl.org

    blank placeholder


  • 19.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 07-27-2017 10:48

    After a Texas federal judge halted the Obama administration's 2016 proposed rule to change the Department of Labor's (DOL) overtime rule last December, the regulation's status has been left in limbo ever since. (Read this blog for a refresher on what the rule would do.)

    However, POLITICO reports that the Trump administration is now reexamining the regulation after DOL issued a request for information this week. The agency is seeking public comments on several items regarding the proposal, including:

    • Whether DOL should adjust the salary threshold of $23,660 to inflation
    • Whether there should be 'multiple standard salary levels' based on the size of the employer, census region or other factors;
    • Whether there should be 'different standard salary levels for the executive, administrative and professional exemptions';
    • Whether the 2016 rule proposed by the Obama administration supplanted the duties test;
    • Whether the salary threshold should update automatically;
    • Whether employers should rely only on a duties test 'without regard to the amount of salary paid by the employer.

    The request was published in the Federal Register yesterday, and will be open for 60 days for public comment. Comments may be submitted to the DOL here, but please feel free to discuss the issue with your peers on the network. Please stay tuned as we learn more information in the coming weeks.

    ------------------------------
    ASBO USA
    asbousa@asbointl.org
    ------------------------------

    blank placeholder


  • 20.  RE: DOL/FLSA Overtime Regulations Advocacy Update

    Posted 09-11-2017 14:26
      |   view attached
    On August 31, the Department of Justice (DOJ) "formally ended the Obama administration's expansion of the federal overtime rule, by announcing it would not appeal a District Court's ruling that said the government overreached when it expanded the number of people covered by the rule," the Washington Examiner reported last week. The Partnership to Protect Workplace Opportunity (PPWO), a coalition that ASBO International is working with to advocate for sensible overtime reforms, says the decision "effectively vacates the Obama overtime regulation," as the DOJ does not plan to appeal it. (See PDF attachment for details.)

    Thank you to everyone who advocated with ASBO International on this issue, and please remember to submit feedback to the Trump administration about how the federal government should/should not change overtime regulations. Officials are still accepting public comments until September 25, and will consider feedback if/when they decide to propose a new rule in the future. See this alert for more details about the administration's request, what information they're seeking, and how to submit your feedback.




    ------------------------------
    ASBO USA
    asbousa@asbointl.org
    ------------------------------

    Attachment(s)

    pdf
    OTruledecision.pdf   461 KB 1 version
    blank placeholder