Magazine article HRMagazine

SHRM Calls for Overtime Overhaul

Magazine article HRMagazine

SHRM Calls for Overtime Overhaul

Article excerpt

Proposed changes to the federal overtime regulations will have a significant negative impact on employers and employees, SHRM wrote in comments to the U.S. Department of Labor in September.

The proposed changes to the federal Fair Labor Standards Act, which are expected to be finalized in 2016, would raise the salary threshold at which an employee is eligible to be classified as exempt from $23,660 to $50,440.

While SHRM agrees that it is time to update the salary threshold, it argues the proposed increase is too much. The employees most likely to be reclassified as nonexempt may experience negative consequences such as reduced workplace flexibility, fewer opportunities to gain experience and loss of professional status, according to SHRM.

More than doubling the salary threshold would create difficulties for many organizations, particularly nonprofits, state and local governments, and companies based in certain regions of the country with lower costs of living and lower incomes, SHRM stated. …

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