On July 28, NMHC and NAA released guidance for the multifamily industry on the Labor Department's overtime rule. Prepared by Jennifer Redmond and Brian Fong of Sheppard Mullin, the guidance describes the rule in detail and provides issues for owners, operators and developers of multifamily housing to consider as they seek to comply with the new rule. Effective December 1, the controversial overtime rule lifts the overtime pay threshold from $23,660 to $47,476. The rule is expected to impact 4.2 million executive, administrative and professional employees who are paid by the hour or earn less than the threshold.
The final rule would harm the ability of multifamily employers to implement, and their impacted employees, including property managers at traditional multifamily and student housing developments, to take advantage of flexible scheduling options. In addition, the rule would limit career advancement opportunities for employees. The rule also goes far beyond the multifamily industry and has the potential to affect employees at colleges and universities who serve student housing residents.
NMHC/NAA strongly oppose the overtime rule and are supporting all avenues that would either repeal or limit the rule. Right before adjourning for the summer recess, the House Appropriations Committee passed funding legislation on July 14 that would prevent the Obama Administration from implementing the overtime rule.
In addition to appropriations action, Representative Kurt Schrader (D-OR) introduced the Overtime Reform and Enhancement Act on July 14, which would require the Labor Department to phase-in the overtime pay threshold over three years so that it would be fully effective beginning December 1, 2019. The bill would also eliminate automatic adjustments to the pay threshold. NMHC/NAA sent a letter to Representative Schrader endorsing the measure.
Currently, the outlook for overturning the overtime rule is uncertain. On the appropriations front, many observers believe that Congress will be forced to pass a short-term spending bill in September to fund the government until after the election. This could leave decisions on the overtime rule for the end of the year or the next Administration. Representative Schrader’s bill may emerge as a viable compromise on the overtime rule if it is able to attract Republican support in both the House and Senate.
To read the NMHC and NAA overtime rule backgrounder, please click here.