In a move that could have major ramifications for members of the residential construction industry, the U.S. Department of Labor (DOL) has sent its final rule changes expanding who is covered by overtime laws to the Office of Management and Budget (OMB).
The rule would impact employees who were previously exempt from the overtime requirements, such as construction supervisors and outside sales staff, among other administrative employees.
The new rule would double the federal overtime salary threshold from $23,660 to $50,440 and, for the first time ever, index the salary threshold annually.
By 2030, employees who make less than approximately $69,720 would be eligible for overtime. This could force many small builders to scale back on pay and benefits, as well as cutting hours to avoid overtime requirements.
The issue is a top priority of the administration, and President Obama is racing to release the rule now in a bid to thwart potential congressional efforts to overturn the measure. It is expected that the final rule will be released in April and will likely take effect by August.
NAHB has been working diligently to fight the proposed overtime rule. NAHB Chairman Ed Brady testified before Congress last fall against the proposal. NAHB is also working with congressional allies and stakeholder groups to see that an appropriations rider to stop the rule is included in this year’s budget. While NAHB will fight vigorously, it is important for our members to be prepared.
For more information, email Suzanne Beall at NAHB or call her at 800-368-5242 x8407.