Businesses be Ready: Overtime Rule Kicks in Dec. 1

Filed in Codes and Standards, Labor, Legal by on November 15, 2016 4 Comments

overtimeclockSmall home building firms and other businesses need to be prepared as the Department of Labor’s final rule to double the overtime salary limit from $23,660 to $47,476 will take effect on Dec. 1.

It is uncertain what the incoming Trump administration will do on overtime next year, but what remains crystal clear is that the Dec. 1 compliance deadline remains hard and fast.

This means that any professional, administrative and executive employees making under $47,476 will be due time and a half if they work more 40 hours a week. NAHB estimates that more than 100,000 construction supervisors will be newly eligible for overtime next month.

Working with House and Senate lawmakers and members of our business coalition, the Partnership to Protect Workplace Opportunity, NAHB has been spearheading effort to mitigate the effects of the overtime rule. NAHB is asking Congress to phase-in the new salary requirements, as well as provide permanent relief from the rule’s provision to automatically update the salary threshold every three years.

The Overtime Reform and Review Act (S. 3464) in the Senate and the Overtime Reform and Enhancement Act (H.R. 5813) in the House would achieve these goals. The legislation is unlikely to move forward during the lame duck session as President Obama would likely veto either measure.

NAHB joined with other business groups in filing a legal challenge to the overtime rule on Sept. 20. The lawsuit was filed in the U.S. District Court for the Eastern District of Texas. In addition, 21 states have also filed suit challenging the rule and the two lawsuits have been consolidated. The parties have filed motions for a summary judgment. NAHB is awaiting decision on the outcome of those motions.

As NAHB keeps working toward permanent relief, members need to be prepared to comply by Dec. 1. The association will continue to provide its members with the tools they need to comply with the new overtime requirements, including an FAQ document and webinar.

NAHB will also work with the Trump administration to find relief, particularly with the automatic salary threshold hikes.

For more information, contact Suzanne Beall at 800-368-5242 x8407.

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Comments (4)

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  1. Jim Quinn says:

    Typical government stupidity. How can you possibly set a standard salary figure across the country. Aren’t wages somewhat different in larger metropolitan areas like New York than in our sleepy little town of Punta Gorda. Most of the office managers in our area are probably making about $36,000 base salary with bonuses taking them closer to $50,000. If we have to start paying OT than we won’t be able to be as generous with bonuses.

  2. Ryan Hukill says:

    How does freedom and a free market work when the government puts their own rules and regulations into what they think someone should be paid. If someone does not like what their getting paid they have the freedom to move on and change. That is called freedom of choice.

  3. Our sales team has a base salary $35,000 plus commission. How does commission figure in? Our sales people have to reach a minimum sales number each month and then commission kicks in. Some months they make commission and some months they don’t. The only time they work over a 40 hour week is during trade show weekends. Do I have to figure their annual base and divide into a 40 hour work week to figure an hourly wage and then time-and-1/2 it during show hours that take them over the 40 hours? I could keep them at 40 hours and send them home, but these shows are their bread and butter! So I (the employer) have to pay for the set up/take down, expensive booth space, and time-and-1/2 additional wages for employees that are begging to be there. It is for their benefit. I could put other personnel there, but the sales people like and need the face time with prospective clients. Hate when the Feds butt in where they don’t belong!

  4. Harry Crowell says:

    Government should have absolutely no say in setting wages—PERIOD—
    Just show me anyplace in our Constitution or Bill of Rights where government has any rights to set wages.

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