The U.S. Department of Labor (USDOL) proposed a new overtime rule last month that would raise the salary threshold for exempt workers under the Fair Labor Standards Act (FLSA). 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.

The U.S. Chamber of Commerce called on the USDOL to adjust the rule and its vice president of workplace policy, Marc Freedman, says, “The Department of Labor’s proposed overtime regulation is the wrong rulemaking at the wrong time. It represents a more than 50% spike in the salary threshold and will increase costs for small businesses, nonprofits and other employers at a time when businesses already face persistent workforce shortages that are hindering the economy. The proposed regulation also includes an automatic escalator clause that lacks statutory authorization and guarantees the salary threshold will become unworkable in just a few short years. The U.S. Chamber hopes that USDOL heeds the comments and input from employers and makes significant changes to its proposal.”

The Indiana Chamber will keep you informed on the progress of this proposed rule and how you can submit comments to the USDOL in the future.

Ashton Eller is the Indiana Chamber’s vice president of health care and employment law. For the prior 14 years, Eller worked at the organization in other roles – the last five as manager of political affairs. Previously, he spent two years at the Indiana Department of Labor. Eller also is a former president and member of the Indiana State Fair Board of Directors, elected from District 7.