The Department of Labor faced a flood of over 26,000 comments on its overtime rule revamp proposal, aimed at mandating overtime pay for employees earning below $55,068 yearly. The feedback window recently slammed shut, sparking a wave of discontent among industry leaders. The HR Policy Association, representing senior HR officers from 400 firms, slammed the proposal as a rigid and unworkable overtime structure. They urged a significant overhaul or complete withdrawal of the rule, citing potential chaos in classifying remote workers and compliance hurdles linked to flexible work preferences.
This move, they argued, could be perceived as a downgrade from exempt to nonexempt status by many employees—a sentiment echoing across industries. The association flagged concerns over the brief 60-day compliance window, pressing for a more realistic 180-day period, and outright rejected the automatic salary threshold hikes every three years.
Adding to the dissent chorus, the Society for Human Resource Management (SHRM) sought an extended 180-day compliance window or proposed delaying the rule’s implementation until 2025. SHRM also contested the automatic threshold escalations, suggesting a lower starting threshold than the proposed $55,068, a considerable leap from the current $35,000.
Industry-specific worries emerged too. UT Health San Antonio’s VP and Chief HR Officer highlighted potential budget upheavals in grant-funded research projects due to sudden salary threshold spikes, potentially risking these critical projects. These concerns signify broader industry apprehensions surrounding the abrupt shift in overtime regulations.
The deluge of objections from HR associations, industry leaders, and professionals highlights the widespread resistance to the proposed DOL overtime rule. Concerns span compliance challenges, workforce perceptions, and industry-specific budget impacts, painting a unified portrait of industry apprehension over the impending regulatory changes.
