DOL Proposed Changes to Overtime Pay

The U.S. Department of Labor released a draft regulation on June 30 that would increase the regular overtime salary threshold from the current $23,660 to $50,440.  NAHB estimates more than 110,000 construction supervisors in the U.S. would be overtime-eligible under the proposal.

The rule would also increase the salary threshold for the highly compensated employee category, which faces a much simpler exemption test, from $100,000 to $122,148.  It would make the exemption more complex as well, by tying it to data from the Bureau of Labor Statistics.

NAHB and other businesses are concerned that the dramatic surge in overtime eligible employees would not result in an increase for workers’ take-home pay.  Rather, it might force businesses to restructure their workforce by cutting pay, benefits, and hours in order to avoid the new requirements.  The proposed changes could go into effect as soon as January 1, 2016.