Published in Last Word
Senator Tom Harkin (D-IA) has introduced the Restoring Overtime Pay for Working Americans Act that would change the salary threshold and exemptions that determine whether employees who work more than 40 hours per week are eligible for overtime pay.
ACEC is surveying Member Firms to determine an appropriate stance on the issue.
The legislation would raise the salary threshold below which employees are automatically eligible for overtime pay from $455 per week to $1,090 per week and index it for inflation. The legislation would also increase the threshold for “highly-compensated employees,” who are typically exempt from overtime pay, from $100,000 to $125,000.
For employees whose salary is between these two thresholds, the bill would require that 50 percent of the employee’s duties must fall under one of the exemptions in the law—such as professional, executive, or administrative—in order for that employee to be exempt from overtime pay.
On March 13, 2014, President Obama issued an official memorandum directing the Department of Labor to review and revise rules governing overtime pay. Although the presidential memorandum does not specify changes to the rules, Senator Harkin’s legislation may reflect the direction DOL would like to take.
To view the bill, click here. To offer you thoughts on the legislation, contact ACEC Director of Tax and Regulatory Affairs Katharine Mottley.
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