Legislative Affairs

Back in 2014 and 2015, ASBO International members may recall that the Obama Administration proposed a new overtime (OT) rule to raise the overtime salary threshold under the Fair Labor Standards Act (FLSA).

The Obama proposal would have raised the OT eligibility threshold from $23,600 up to $50,400. Although many school staff would have been exempt from the rule, it would not necessarily have excluded everyone, especially non-instructional ancillary staff. Because of the administrative and financial burden that the proposed OT rule would put on K-12 employers, ASBO International collaborated with the Partnership to Protect Workplace Opportunity (PPWO) to oppose the rule. The rule went to the courts and was left in limbo there until the Trump administration decided to reexamine overtime regulations again in August 2018.

The Trump Administration held several public hearings to solicit feedback on updating the OT rule and salary threshold to find a compromise, and ASBO continued to work through the PPWO to share input on the rule. Today, the Department of Labor (DOL) announced the final OT rule from the Trump Administration, which is expected to be posted in the Federal Register on Friday, September 27. The final rule includes almost all recommendations the PPWO offered during the public comment period.

Key provisions of the final OT rule include:

Salary Threshold – Raises the threshold from $23,600 to $35,568/year ($684/week), which is much lower than what the Obama Administration proposed and should place a lighter burden on employers than the original $50,400/year proposal.

Future Salary Updates – The rule would not automatically implement updates to the OT salary threshold; any proposals to update the threshold must allow for a period of public comments/debate before DOL can change it.

Duties Test – Makes no changes to the duties tests.

Highly Compensated Employees – Sets the new threshold at $107,432, which is reduced from the Obama Administration's proposed level (over $147,000), which was too high.

Salary Test – Would allow nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary test requirement, with a single pay period to make any "catch up" payments.

Effective Date – January 1, 2020.

For more information, read DOL's announcement here and the final rule to be posted in the federal register here. We appreciate all of our members who helped ASBO International advocate for more sensible reforms to update these regulations. Thank you!

On Monday, November 4, 2019 at 1:00PM (EST), the Department of Labor (DOL) Wage and Hour Division is offering a free public webinar to help employers comply with DOL's final overtime (OT) rule which will take effect January 1, 2020. The webinar will allow participants to submit questions and provide compliance assistance on:

• Provisions of the final rule so that employers can comply with the changes and inform workers and their advocates of their rights,
• Specific changes that the final rule will make when it becomes effective at the beginning of the year,
• Detailed information about new materials and resources available on the overtime final rule website.

Back in 2014 and 2015, ASBO International members may recall that the Obama Administration proposed a new overtime (OT) rule to raise the overtime salary threshold under the Fair Labor Standards Act (FLSA).

The Obama proposal would have raised the OT eligibility threshold from $23,600 up to $50,400. Although many school staff would have been exempt from the rule, it would not necessarily have excluded everyone, especially non-instructional ancillary staff. Because of the administrative and financial burden that the proposed OT rule would put on K-12 employers, ASBO International collaborated with the Partnership to Protect Workplace Opportunity (PPWO) to oppose the rule. The rule went to the courts and was left in limbo there until the Trump administration decided to reexamine overtime regulations again in August 2018.

The Trump Administration held several public hearings to solicit feedback on updating the OT rule and salary threshold to find a compromise, and ASBO continued to work through the PPWO to share input on the rule. Today, the Department of Labor (DOL) announced the final OT rule from the Trump Administration, which is expected to be posted in the Federal Register on Friday, September 27. The final rule includes almost all recommendations the PPWO offered during the public comment period.

Key provisions of the final OT rule include:

Salary Threshold – Raises the threshold from $23,600 to $35,568/year ($684/week), which is much lower than what the Obama Administration proposed and should place a lighter burden on employers than the original $50,400/year proposal.

Future Salary Updates – The rule would not automatically implement updates to the OT salary threshold; any proposals to update the threshold must allow for a period of public comments/debate before DOL can change it.

Duties Test – Makes no changes to the duties tests.

Highly Compensated Employees – Sets the new threshold at $107,432, which is reduced from the Obama Administration's proposed level (over $147,000), which was too high.

Salary Test – Would allow nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary test requirement, with a single pay period to make any "catch up" payments.

Effective Date – January 1, 2020.

For more information, read DOL's announcement here and the final rule to be posted in the federal register here. We appreciate all of our members who helped ASBO International advocate for more sensible reforms to update these regulations. Thank you!

Due to overwhelming demand for DOL's overtime (OT) final rule webinar on November 4, DOL has scheduled two additional webinars to provide compliance assistance on the final rule, which takes effect January 1, 2020. The two other time slots for the webinars will take please on November 12, 2019 at 1:00PM (EST) and on November 19, 2019 at 1:00 pm (EST).

Register for the Nov 4 webinar here.

Register for the Nov 12 webinar here.

Register for the Nov 19 webinar here.

Please note a recording of the webinar will be posted on DOL's Wage and Hour Division's OT rule website after the live presentation.

On Monday, November 4, 2019 at 1:00PM (EST), the Department of Labor (DOL) Wage and Hour Division is offering a free public webinar to help employers comply with DOL's final overtime (OT) rule which will take effect January 1, 2020. The webinar will allow participants to submit questions and provide compliance assistance on:

• Provisions of the final rule so that employers can comply with the changes and inform workers and their advocates of their rights,
• Specific changes that the final rule will make when it becomes effective at the beginning of the year,
• Detailed information about new materials and resources available on the overtime final rule website.

Back in 2014 and 2015, ASBO International members may recall that the Obama Administration proposed a new overtime (OT) rule to raise the overtime salary threshold under the Fair Labor Standards Act (FLSA).

The Obama proposal would have raised the OT eligibility threshold from $23,600 up to $50,400. Although many school staff would have been exempt from the rule, it would not necessarily have excluded everyone, especially non-instructional ancillary staff. Because of the administrative and financial burden that the proposed OT rule would put on K-12 employers, ASBO International collaborated with the Partnership to Protect Workplace Opportunity (PPWO) to oppose the rule. The rule went to the courts and was left in limbo there until the Trump administration decided to reexamine overtime regulations again in August 2018.

The Trump Administration held several public hearings to solicit feedback on updating the OT rule and salary threshold to find a compromise, and ASBO continued to work through the PPWO to share input on the rule. Today, the Department of Labor (DOL) announced the final OT rule from the Trump Administration, which is expected to be posted in the Federal Register on Friday, September 27. The final rule includes almost all recommendations the PPWO offered during the public comment period.

Key provisions of the final OT rule include:

Salary Threshold – Raises the threshold from $23,600 to $35,568/year ($684/week), which is much lower than what the Obama Administration proposed and should place a lighter burden on employers than the original $50,400/year proposal.

Future Salary Updates – The rule would not automatically implement updates to the OT salary threshold; any proposals to update the threshold must allow for a period of public comments/debate before DOL can change it.

Duties Test – Makes no changes to the duties tests.

Highly Compensated Employees – Sets the new threshold at $107,432, which is reduced from the Obama Administration's proposed level (over $147,000), which was too high.

Salary Test – Would allow nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary test requirement, with a single pay period to make any "catch up" payments.

Effective Date – January 1, 2020.

For more information, read DOL's announcement here and the final rule to be posted in the federal register here. We appreciate all of our members who helped ASBO International advocate for more sensible reforms to update these regulations. Thank you!