U.S. DOL Proposes New Overtime Rule

Late last week, the Department of Labor announced its proposed overtime rule. As you may recall, ABI opposed the prior rule that was published during the Obama administration and provided public comments as to our concerns about the impact the rule would have on jobs and Iowa’s economy.

In response to the opposition and court decision in late December 2016, the DOL has proposed a new rule. According to the National Association of Manufacturers (NAM), “the proposal would increase the minimum salary for overtime exemption to $35,308 per year. It does not include an automatic increase, but commits to periodic review and update of the threshold. It also permits employers to use nondiscretionary bonuses and incentive pay to satisfy up to 10 percent of the salary level. There is no change to the duties test. The rule affects exemptions for executive, administrative, professional, outside sales and computer employees—it does not affect non-management employees, including non-management production-line employees.”

As you review this new proposal, please provide any feedback to Nicole Crain.