The Department of Labor (DOL) took its first formal step to remove the Overtime Exemption Rule. DOL has asked for input regarding the impact the current rule would have had on employers had the federal court not stopped it.
NCA and our allies on the Partnership to Protect Workplace Opportunity will be submitting comments and we will be helping DOL as it removes this rule and crafts a new one. Once DOL has received these comments, due September 25, it will have the information necessary to confirm that the rule should be removed. NCA expects that the final rescission of the rule will occur before the end of the year.
We expect the DOL to recommend a new threshold to be around $634 per week or $33,000 per year, up from the current rate of $455 per week or $23,660 per year.
Naturally, there will be an opportunity to discuss whether that figure is fair, appropriate and workable for our industry. To that end, please consider discussing this number with your senior leadership staff and board and do not hesitate to contact me if $634/week could impact your club negatively.
Under this administration, we will have a far greater chance to ensure that the next rule more accurately reflects the market needs in our industry—whatever is determined to be the final minimum weekly salary threshold number.
How We Got Here
Under the Obama administration, the DOL issued the Overtime Exemption Rule, which would increase the minimum weekly salary an employee must earn to be considered exempt from overtime to $913 per week ($47,476 per year). The rule was set to go into effect on December 1, 2016. However, on November 22, 2016, a federal district court judge in Texas ruled that the DOL’s new Overtime Rule should be stopped.
The Obama DOL appealed the court’s ruling, however, the new Trump administration labor department has pushed rescind or replace the rule. NCA will continue to keep you updated on this matter. If you have any questions regarding the overtime rule, please contact NCA Vice President of Government Relations & General Counsel Brad Steele at [email protected] or 202-822-9822.