Congress worried about overtime rules

As we all sit and wait for the U.S. Department of Labor Wage and Hours Division to release the new final rules regarding the salary level for exemptions from overtime pay, some in Congress are beginning to worry about how these new rules will affect their staff.

As you know, the proposed rules would raise the minimum salary level for exempt employees from its current $455 per week ($23,660 per year) to perhaps as much as $970 per week ($50,440 per year).  (Our discussion of the proposed rules can be found in the link above).

According to an article in Bloomberg BNA, some members of Congress wonder how their budgets can accommodate such a dramatic rise in salaries. Congressional staffs are often made up of young, exempt, professionals who are paid less than the proposed $50,440 threshold and often work in excess of 40 hours per week. Many House Democrats who favor the expansion of overtime protections to employees in the private sector are concerned they won’t have enough money to maintain their current staffing levels.

Once the rules are finalized, all New York employers will be scrambling to adjust their budgets to reflect the new reality. Unfortunately, unlike Congress, private employers cannot just “appropriate” more money for themselves. Important decisions will need to be made regarding staffing levels and pay practices.

For questions on how these new rules may affect you, please contact Frank Kerbein, Director, Center for Human Resources at frank.kerbein@bcnys.org or at (800) 332-2117.