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INDUSTRY UPDATE

DOL’S NEW OVERTIME RULE ANOTHER BLOW TO JOB CREATORS As of December 1, 2016, a new rule will go into effect that will significantly impact employers in all industry’s across the country, including construction. Not only will this new rule restrict an employer’s ability to manage their business as they see fit, but it will also increase operating costs and hinder job creation. This new obstacle is known as the “Overtime Rule.” For years, the Fair Labor Standards Act (FLSA) has required employers to pay 1.5 times the regular hourly rate to non-exempt employees who register more than 40 hours in a standard workweek. However, FLSA includes an exemption for employees who tend to be salaried, which exempts employers from having to pay overtime wages to any employees classified as executive, administrative, professional, or computer professionals. The exempt employees also must be paid an annual salary of at least $23,660. In March of 2014, President Obama instructed the United States Department of Labor (DOL) to “modernize” this rule. However, what the DOL concocted and labeled as “modernized,” business owners and job creators see as an unprecedented overreach into the free market. Of the many things the new rule would do, there are a couple of changes that would have a significant negative impact on busi-

nesses. One change would nearly double the minimum salary level for the exemption from overtime pay from $23,660 to $47,476. The rule would also automatically update the standard salary level every three years. The first update will occur on January 1, 2020. From the beginning, ABC has been a consistent, vocal opponent of this latest attempt at vast government overreach into the free market. ABC and more than 900 members have submitted comments criticizing the proposal and asking for it to be withdrawn. Instead, ABC and members of the Partnership to Protect Workplace Opportunity have advocated for the adoption of the Protecting Workplace Advancement and Opportunity Act in Congress, which would prohibit the DOL from implementing this rule and require economic effects are evaluated before these type of rules can be enacted. At the time of publication, ABC and a coalition of business groups made the decision to continue to fight back and have filed suit against the DOL, to combat this costly and burdensome rule. MM IF YOU WOULD LIKE TO LEARN MORE ABOUT THIS NEW RULE AND THE EFFORTS BEING TAKEN TO COMBAT ITS IMPLEMENTATION, PLEASE VISIT WWW.PROTECTINGOPPORTUNITY.ORG OR WWW.ABC.ORG.

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