NACS Files Comments on Overtime Rule

The Labor Department requested information from interested parties about the 2016 revisions of the Fair Labor Standards Act.

September 27, 2017

WASHINGTON – This week, NACS filed comments with this U.S. Department of Labor about the 2016 revisions that bumped the minimum salary threshold to barely over $47,000 annually to qualify for the Fair Labor Standards Act’s “white collar” overtime exemption. The rule had also raised the overtime eligibility threshold for highly compensated employees to around $134,000.

In relation to the salary threshold set by the revisions, NACS contends that such thresholds should be set on actual salaries of potentially exempt workers who are paid on a salary basis. NACS strongly opposes any adoption of multiple salary levels to avoid confusion, and urged the agency to not automatically update the salary threshold.

NACS again recommended that the Labor Department not change the salary level threshold more than 5% of the prior salary level, and said the re-evaluation period for this rule should be visited not less than every three years. Finally, NACS asked that the agency provide sufficient notice of a revised salary threshold because employers need time to figure out which employees might be impacted and to analyze what that would mean for their business.

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