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

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.

SAF and other groups representing small businesses joined together and provided comments on the proposed rule to the US Department of Labor (DOL) through the Small Business Legislative Council (SBLC).

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.