New DOL Overtime Rule will Impact Employers
The U.S. Labor Department, at the direction of the White House, on Wednesday released details of new rules that double the threshold at which a private-sector employee becomes ineligible for overtime to $47,476 annually, or $913 per week, from roughly half that amount. The rule, which is slated to take effect Dec. 1, effectively adds 4.2 million workers to the pool that must be 1.5 times their hourly wage for each hour worked beyond 40 hours a week.
The administration announced the rule change, despite great input from the business community over the last year stating that doubling the threshold would create a major barrier for employers large and small. “The sheer arrogance displayed by the Department of Labor in failing to heed the concerns of the nation’s small business community will result in severe repercussions that will harm workers, small businesses, housing affordability, job growth and the economy," said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill.