AGC Advises DOL to Revisit Overtime Rule’s Salary Threshold

On Sept. 25, AGC submitted comments to the U. S. Department of Labor’s Wage and Hour Division in response to a Request for Information (RFI) on the 2016 changes to the Fair Labor Standards Act (FLSA) overtime regulations. In line with AGC’s regulatory recommendations, this RFI is the first step the Department is undertaking to revisit the overtime rule that dramatically increased the salary threshold for exempt employees. AGC and its members were concerned that imposing such a large and immediate increase might result in unintended consequences, particularly for small construction companies, construction employers in lower‐wage regions, and construction personnel.
AGC’s comment letter agrees that the FLSA should be modernized, but advises the Department of Labor to update the salary threshold to a reasonable number that makes sense for today’s workforce. AGC recommends the Department consider the 2004 methodology in setting a single salary threshold that makes sense for employers nationwide, including those in lower-cost, lower-wage regions, allowing the economic market conditions to prevail in higher-cost, higher-wage regions. AGC believes that should the Department of Labor choose to apply the 2004 methodology to current data, no additional revisions to the duties tests would be necessary. In response to the specific questions posed in the RFI, AGC stresses simplicity over complexity as the threshold is revisited.
AGC will continue to provide input to the Labor Department on the impact further changes might have on the construction industry and will notify members of any developments.
For more information, contact Claiborne Guy at [email protected] or 703-837-5382.

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