News

Labor Department's Proposal to Raise Salary Threshold Could Hurt Both Employers and Employees, AGC Cautions

Contact Your Legislators and Urge Them to Oppose the Proposed Rule as Written

The Department of Labor has proposed a change to overtime pay requirements that would increase the minimum salary threshold from $23,660 per year to $50,440 per year. Employers that have employees who are currently classified as exempt under the Fair Labor Standards Act and earn an annual salary less than the proposed $50,440 will be impacted.

After AGC raised concerns about the proposal, members of Congress introduced legislation that would require the Labor Department to perform a deeper analysis of the impact the proposed changes will have on employer costs, employee flexibility and career advancement before proceeding with a final rule.  Please contact your members of Congress and urge them to support the measure, which is known as the Protecting Workplace Advancement and Opportunity Act. 

Last September, AGC cautioned federal officials that the proposed rule would have a significant, negative impact on the construction industry.  AGC also joined with the Partnership to Protect Workplace Opportunity coalition; a diverse group of associations, businesses, and other stakeholders representing employers with millions of employees across the country in almost every industry in submitting comments. AGC will continue to monitor developments and will notify members once final regulations are issued. 

For more information, please contact Jim Young at youngj@agc.org or Tamika Carter at cartert@agc.org