Here's an update on the Administration's overtime pay edict from our sibling ProSales:
Mounting opposition and distressful surprises are taking place nationwide as businesses and nonprofits learn about and fight against a new rule on overtime pay scheduled to take effect Dec. 1. But a fast-closing window of opportunity and White House opposition make it ever more unlikely the rule will get altered.
The rule doubles to $47,476 annually the amount of income that private-sector employees must get before they pretty much automatically are considered exempt from overtime pay. The current threshold is $23,660. The Labor Department estimates the rule will affect 4.2 million workers. Because it's billed mainly as an attempt to catch up with inflation, the Labor Department can put the rule into effect automatically, as well as include an inflation escalator from now onward.
More than 400 organizations--"from Christmas tree farmers to festival organizers," plus groups like the National Association of Home Builders (NAHB)--support legislation to phase in the rule's effects, Sen. Lamar Alexander announced Oct. 18. The Tennessee Republican is lead sponsor of legislation that would phase in the Overtime Rule's financial effects over five years, with a 50% increase in the first year. Significantly for groups like NAHB, the legislation also would kill the automatic escalator.