Consequences of the DOL Overtime Rule
The U.S. Department of Labor (DOL) has been working to revise current overtime laws, releasing a draft regulation last year that would increase the federal overtime salary threshold from the current $23,660 to $50,440. The proposal could have a major impact on members of the residential construction industry if it goes forward. NAHB estimated over 110,000 construction supervisors would become eligible for overtime pay under the rule, which could take effect as soon as this summer. Essentially, employers would need to track hours and pay overtime for any employees earning less than $970 per week.
Recently the DOL announced it is considering a plan to reduce the upcoming cap from $50,440 to just $47,000. This minimal reduction would still amount to a 99% increase from the current overtime salary limit of $23,660 and have major consequences for the workforce – especially for trades that value schedule flexibility. NAHB is working on legislation that would require the DOL to withdraw the proposal until it has properly considered the economic effects of nearly doubling the overtime threshold.