116,000 Construction Supervisors Eligible for Overtime this Summer

Filed in Advocacy, Labor, Legal by on April 13, 2016 3 Comments

overtimeclockPlease contact your member of Congress today regarding the U.S. Department of Labor’s (DOL) recent overtime proposal. Time is of the essence to halt a plan that could do our industry great harm.

If this proposal goes forward, you may have to pay overtime to employees who are now exempt. In fact, we estimate over 116,000 construction supervisors would become overtime eligible under this proposal, which could take effect as soon as this summer.

The new rule would double the federal overtime salary threshold from $23,660 to $50,440, and, for the first time ever, index the salary threshold to inflation. This would mean that for any employees earning less than $970 per week, you would need to track their hours worked and pay overtime. ThisĀ could force many small builders to scale back on pay and benefits, as well as cutting hours to avoid overtime requirements.

We are working on a solution, but need your help. The Protecting Workplace Advancement and Opportunity Act (Senate bill S.2707 and House bill H.R.4773) would force the DOLĀ to withdraw this proposal until it has considered the economic effects of nearly doubling the overtime threshold. We need you to ask your member of Congress to co-sponsor and support this bill.

Please send the following to your representative and senator:

Senator Letter

Representative Letter

Want to be a part of future outreach efforts? Register as a member of NAHB’s Builderlink program.

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Comments (3)

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  1. Howard Pomp says:

    I am shocked at the magnitude of the proposed increase. I agree that we need an increase but let’s discuss the increase at a reasonable level. Step one may be equal to a rate of $15.00 per hour for the minimum rate to begin overtime and have annual increases.

    • Dante Archangeli says:

      Howard, I’m not sure what you mean by “$15.00 per hour for the minimum rate to begin overtime”. Do you mean that anyone being paid less than $15.00 per hour shouldn’t be eligible for overtime? Or do you mean that anyone earning over $15.00 per hour (approximately $31,000 per year) shouldn’t be eligible for overtime?

      • Howard Pomp says:

        Anyone under the rate established would qualify for overtime payments.

        After further thought I did some research on the average salary and it is approximately $26,000 annually. I would suggest a 40% or 50% increase from the current base.

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