Overtime rule finalized, employer costs to increase
May 19, 2016
The Department of Labor finalized its proposed overtime rule relating to exempt and non-exempt employees on Wednesday, with a large increase to the salary but no change to the duties test. Last fall ABI submitted two sets of comments to the Department of Labor in opposition to the rule. In the comments, ABI mentioned the effect the rule would have on Iowa employers and the economy, especially given the softening agriculture economy. In addition to more than doubling the salary threshold, the rule includes an automatic increase every three years. The rule will go into effect on December 1, 2016, giving Iowa companies approximately six months to comply. Several of ABI’s partners and members have issued statements regarding the overtime rule.
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- US Chamber: Overtime Rule will burden employers in tepid economy
- Belin McCormick: DOL announces two rules changes