We wrote in October about the U.S. Department of Labor (USDOL) proposing a new overtime rule that would raise the salary threshold for exempt workers under the Fair Labor Standards Act. The new proposed threshold is $1,059 per week, or approximately $55,000 annually. The current threshold is $684 per week, or $35,568 annually. The USDOL also proposed automatic increases every three years.
Last month, the Indiana Chamber submitted a comment to the USDOL’s Wage and Hour Division explaining our opposition to the proposed rule. As noted in our comment, “Should this rule become effective, the minimum salary threshold for exempt employees will increase by over 50% of the current threshold. This increase will further burden employers amid a volatile labor market and record-high inflation. The costs associated with rule compliance will be too significant for businesses, creating a high risk that many companies may shutter or be required to eliminate positions unnecessarily. The proposal should have considered the persistent challenges currently mandating tough decisions from business owners.”
The Indiana Chamber will continue to monitor this proposed rule and work with our federal congressional delegation to address our concerns.
