[US - New York] Proposed overtime regulations raise pay threshold

Proposed regulations on overtime, released by the Labour Department, increase the overtime pay exemption threshold from $23,660 to $35, 308, City News 1130 reports.

The Labour Department expects a higher threshold to give eligibility to more than one million workers. Particularly those in supervisory or assistant management roles in retails, food services and manufacturing. Though the change will apply to companies of all sizes, higher overtime costs have the most significant impact on small businesses.

The full Labor Department proposal (regulation docket number RIN 1235-AA20) is posted on the federal website and members of the public may comment.

The proposed regulations revise rules written during the Obama administration, rules to double the overtime pay exemption threshold to $47,476. The new Trump administration proposal moves the figure to approximately halfway between the current threshold (in place since 2004) and the previous administration’s rules. Estimated to have potentially affected 4.2 million people.

The Obama era regulations had been scheduled to begin in 2016 until the plan was stopped by a federal lawsuit.

From the time Labor Secretary Alexander Acosta took office, small businesses had expected a threshold increase. Karen Kerrigan, president of the advocacy group Small Business & Entrepreneurship Council, said owners “generally do not like it when the federal government intervenes on wage issues.”

However, Ms Kerrigan says the rules include a provision for increases in the exemption threshold every four years through the rule-making process. Instead of the automatic increases of the Obama plan.

Business owners reluctant to pay additional overtime have explored options like limited, eight-hour, shifts and wage raises into exempt categories. These are legal strategies but giving affected staffers raises to put them into the category of exempt employees. Owners also reportedly said they might limit workers to eight-hour shifts.

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Proposed regulations on overtime, released by the Labour Department, increase the overtime pay exemption threshold from $23,660 to $35, 308, City News 1130 reports.

The Labour Department expects a higher threshold to give eligibility to more than one million workers. Particularly those in supervisory or assistant management roles in retails, food services and manufacturing. Though the change will apply to companies of all sizes, higher overtime costs have the most significant impact on small businesses.

The full Labor Department proposal (regulation docket number RIN 1235-AA20) is posted on the federal website and members of the public may comment.

The proposed regulations revise rules written during the Obama administration, rules to double the overtime pay exemption threshold to $47,476. The new Trump administration proposal moves the figure to approximately halfway between the current threshold (in place since 2004) and the previous administration’s rules. Estimated to have potentially affected 4.2 million people.

The Obama era regulations had been scheduled to begin in 2016 until the plan was stopped by a federal lawsuit.

From the time Labor Secretary Alexander Acosta took office, small businesses had expected a threshold increase. Karen Kerrigan, president of the advocacy group Small Business & Entrepreneurship Council, said owners “generally do not like it when the federal government intervenes on wage issues.”

However, Ms Kerrigan says the rules include a provision for increases in the exemption threshold every four years through the rule-making process. Instead of the automatic increases of the Obama plan.

Business owners reluctant to pay additional overtime have explored options like limited, eight-hour, shifts and wage raises into exempt categories. These are legal strategies but giving affected staffers raises to put them into the category of exempt employees. Owners also reportedly said they might limit workers to eight-hour shifts.

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