Revised Department of Labor Overtime Proposal ‘Unacceptable’

iStock_000046695616_SmallThe U.S. Department of Labor (DOL) is considering a plan to reduce the cap on its forthcoming overtime salary threshold rate hike from $50,440 to $47,000. This minimal reduction would still amount to a 99% increase from the current overtime salary limit of $23,660.

NAHB Chairman Ed Brady issued an official statement responding to the plan, declaring that “this proposal is a token effort at best” and is “unacceptable to America’s small businesses.”

“The unintended consequences of this aggressive regulatory overreach would hurt job and economic growth, as well as many of the workers the plan is trying to help,” Brady added. “There is no reasonable approach or road map on how this would be phased in without resulting in severe economic repercussions. If the $47,000 overtime threshold were to become law, it would hurt millions of small business owners, including home building firms, by forcing them to scale back on pay and benefits, as well as cut workers’ hours to avoid overtime requirements. Indeed, it would be particularly harmful to the housing community, as the vast majority of home building firms have fewer than 10 employees.

“The Department of Labor must scrap this unworkable proposal and go back to the drawing board. We stand ready to work with DOL to craft a practical plan that would gradually ramp up the current overtime threshold so that it does not result in real hardship for small businesses. The rule should also take into account regional variations in wages and cost of living when determining its formula. Such a measured response would help small business, workers and the economy.”

For more information, email Suzanne Beall at NAHB or call her at 800-368-5242 x8407.

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Comments (5)

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  1. Howard Pomp says:

    The question I would like to pursue is can we agree on a number; like a 40% increase or a 50% increase?
    I believe as builders, suppliers and others associated with the building industry we can live with a number as suggested above.

    • Nyle Wadford says:

      We first have to get them to realize that any increase approaching or surpassing 100% is totally out of the question. After that, then we can begin the discussion of the size of a reasonable and sustainable one, or if one is needed at all.

  2. Scott Cleveland says:

    Who works a salaried position for less than $50,000 a year anymore?

    It’s unfortunate that there is no political will to adjust these policies on a gradual basis however I think the law has far outdated present economics. In my company if the job doesn’t pay a wage someone can live on. We don’t create it.

    • Howard Pomp says:

      Scott:
      Where are you located?

    • ES says:

      Every one of my 24 employees has a salary of less than 50K because they work on commission. Commission is totally ignored and that’s just stupid. Talk about something that increases American productivity. Commission systems do! They should not be ignored by the DOL. Commissions are good for business and they’re good for employees by letting them be involved in the business as more than salary collectors since they care how the business does.

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