OSCPA urges DOL to withdraw proposed overtime changes

OSCPA has signed a letter asking U.S. Senate and House members to urge the Department of Labor (DOL) to withdraw its proposed changes to the regulations governing the “white collar” employee exemptions to federal overtime pay requirements under the Fair Labor Standards Act.  

On Aug. 30 the US Department of Labor, Wage and Hour Division, issued a notice of proposed rulemaking increasing the requirements for claiming overtime exemptions for Executive, Administrative and Professional employees, commonly referred to as the “White Collar Overtime Exemptions.” Currently, a white-collar employee can only be overtime-exempt (that is, paid on a flat salary basis without overtime) if the employee performs certain functions requiring judgment and discretion, and is paid at least $684 per week, approximately $35,600 annualized.  

Despite stakeholders conveying concerns to DOL during listening sessions earlier this year, the agency is on the path to enact the proposed changes which could be effective as early as May 1, 2024 
 
The proposed regulation, if accepted as a revision to existing DOL Regulation 29 CFR Part 541 defining overtime eligibility, would increase the weekly required qualification threshold to $1,059 per week, or approximately $55,000 annualized, which could impact many Ohio employers. Somewhat recently, in 2019, the $684 per week requirement was raised from the prior requirement of $455 per week, thus representing an increase in the salary requirement by 130% in four years, if the proposed regulation is accepted.    

OSCPA has joined a national coalition of concerned employers urging the DOL to slow down the process to ensure impacted employers have more than the set 60-day comment period to compile data and respond appropriately.