By BLR Editor Kate McGovern Tornone
The Society for Human Resource Management (SHRM) has announced that it backs legislation that would prohibit the U.S. Department of Labor (DOL) from enforcing its new overtime regulations.
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DOL announced the final rule on May 17; it will more than double the salary threshold for the salary basis test overtime exemption. Effective December 1, 2016, employees must receive overtime unless they are paid at least $913 per week (which translates to $47,476 annually). The current threshold is $455 per week (or $23,660 annually). The rule also includes automatic increases to the threshold.
SHRM, the world’s largest HR professional society, agrees that the salary threshold is due for an increase. But the new regulation goes “too far, too fast,” said the organization’s vice president for government affairs, Mike P. Aitken.
Many companies raise salaries according to cost of living adjustments – either based on the Social Security adjustment or regional adjustment salary surveys.
I believe that the DOL should consider raising the salary threshold according to the same way – annual COLA Adjustments or regional salary adjustment surveys. There should not be such a dramatic change as it will put employees out of jobs (as a lay off)because of budgetary constraints.