AGC joined 95 other business organizations urging the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) to stay implementation of the overtime final rule to allow for judicial review. There are currently four legal challenges to the Department of Labor’s overtime rule in various federal courts, leaving the rule in legal jeopardy. Despite this legal uncertainty, the rule is currently slated to go into effect on July 1.
This April, the DOL announced a final rule to Define and Delimit the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees under the Fair Labor Standards Act. The Associated General Contractors of America recently urged the U.S. Department of Labor’s (DOL) Wage and Hour Division to abandon or at least postpone issuance of this anticipated proposed rulemaking. The DOL last updated these regulations as recently as 2019, going into effect in 2020, which strongly suggests there is no need for urgency in issuing more changes.
Specifically, the final rule would:
- Increase the standard salary level and the total annual compensation requirement for highly compensated employees (HCE).
- On July 1, 2024 – the standard salary level will equal $844 per week (equivalent to $43,888 per year) and HCE total annual compensation level will equal $132,964.
- On January 1, 2025 – the standard salary level will equal $1,128 per week (equivalent to $58,656 per year) and the HCE total annual compensation level will equal $151,164.
- Adopts a mechanism to update the earnings thresholds every three years.
Full letter can be found here.
For more information, contact Claiborne Guy at claiborne.guy@agc.org.