NMHC and NAA joined 91 organizations on May 11 to request that the Department of Labor (DOL) abandon the issuance of new rule altering the overtime regulations under the Fair Labor Standards Act (FLSA). The letter makes the case that “due to significant concerns with supply chain disruptions, workforce shortages, inflationary pressures, and the shifting dynamics of the American workforce following the COVID-19 pandemic, any rule change now would be ill-advised.”
What This Means
This new effort by the Biden Administration could increase the salary threshold under which overtime must be paid from the present $35,568, irrespective of whether an individual is a manager or professional.
Why This Is Critical for Our Industry
Issuing a new rule with higher threshold limits could ultimately increase labor costs and reduce industry flexibility for industry employees. As the letter states, “DOL last updated the overtime regulations only three years ago, which strongly suggests there is no need for urgency in issuing more changes."
NMHC and NAA have long worked on this issue dating back to when the Obama Administration issued a rule that would have significantly increased the overtime threshold. After extensive industry engagement, a final rule was issued in 2019 that was acceptable to the industry. NMHC and NAA will continue to make the case that a new rule is unnecessary.