Chamber President and CEO Richard Perez recently requested input from Chamber members regarding an Administrative Regulation that involves the United States Department of Labor’s (DOL) effort to change the rules governing when an exempt employee is eligible for overtime pay. A large number of members urged us to support the US Chamber’s effort to block the DOL’s planned regulation, and as a result, the San Antonio Chamber of Commerce has added our name to a letter to Congress opposing the proposed change.
The US Department of Labor (DOL) has proposed increasing the salary threshold for exempt employees from the current $23,660 to $50,440 per year, a 113% increase. Three criteria that must be met in order to consider an employee exempt are that they must be: 1) salaried, 2) paid above the $23,660 threshold, and 3) the primary duties must be managerial, professional or administrative as defined by DOL through a standard primary duties test. In addition, DOL has also proposed automatic annual increases to the threshold. Finally, the DOL did not offer a specific proposal to modify the standard primary duties, but has suggested it is considering making some rather extreme changes.
DOL’s proposed regulation has been met by widespread opposition from small and large businesses, nonprofits, local government, academic institutions and the current Administration’s own Small Business Administration Office of Advocacy – all of which have asked the Labor Department to examine more closely the impact of its proposal and consider less harmful alternatives. The Secretary of Labor is clear that without Congressional action this proposal will stand. A copy of the U.S. Chamber's letter to Congress expressing support for a bill that would prevent the regulation from taking effect can be found here.
