U.S. Department of Labor Announces Proposed Changes to Overtime Pay

July 15, 2015

The U.S. Department of Labor’s Wage and Hour Division (WHD) published its Notice of Proposed Rulemaking (NPRM) announcing proposed changes to the overtime regulations of the Fair Labor Standards Act. 

AGC will soon survey its members to gather feedback on the specific aspects of the proposal to further assess its impact on the construction industry.  The deadline for public comments on the proposed rule is September 4. AGC will submit comments as part of the coalition and/or individually. 

The proposal is the result of a 2014 directive from President Obama requiring the Secretary of Labor to modernize and streamline the existing overtime regulations.  The NPRM was officially published in the Federal Register.

If implemented without changes, the proposed rule would increase the salary threshold for the executive, administrative and professional exemptions from $455 per week ($23,660 per year) to $921 per week ($47,892 per year).  The threshold for highly compensated employees would also increase from $100,000 per year to $122,148 per year. Both thresholds would be adjusted annually based on one of two proposed methods. 

Although WHD did not propose any changes to the duties tests in the NPRM, it strongly indicated consideration of changes and requested comments on possible changes. In anticipation of the rule’s announcement, AGC has been advocating on behalf of its members by monitoring the rulemaking process and participating in a cross-industry employer coalition specifically devoted to employer advocacy with regard to the rule.