SAF and other groups representing small businesses joined together this week to provide comments on a proposed US Department of Labor (DOL) overtime rule.

The comments were submitted through the Small Business Legislative Council (SBLC).

As noted previously in Week In Review, the Trump Administration proposed new overtime regulations.

Unlike the Obama Administration’s rule that would have more than doubled the minimum salary level required to exempt executive, administrative and professional employees from eligibility for overtime, the new proposed rule would increase the current threshold to $35,308 from the current $23,660.

Although not nearly as burdensome as the rule issued by the Obama Administration that was subsequently stuck down by a federal court, the proposed rule includes some challenges.

The comments noted that the proposed rule was a “significant improvement” over the 2016 rule “which would have seriously harmed many small businesses and stymied small business growth.”

However, the comments expressed “serious concerns with the proposal to increase the salary threshold for the highly compensated exemption by more than $47,000 – which would be over $13,000 more than the increase” in the 2016 rule noting that the level may be unsustainable for many small businesses. It was also suggested that any increase be phased in over a period of years to allow small businesses to adjust to the new level.

The comments supported the rule’s inclusion of nondiscretionary bonuses and incentive payments counting towards satisfying the white collar salary threshold noting that growing companies often offer bonuses and incentives to offset lowered guaranteed salaries. It was strongly suggested that the threshold be increased to not less than 25 percent.

DOL is currently reviewing the comments submitted on the proposed rule, make changes as it deems necessary, and will publish a final rule in the future.