On August 31, 2015, NACo submitted comments on the proposed rule to amend regulations under the Fair Labor Standards Act governing the “white collar” exemption from overtime pay for executive, administrative and professional employees. In the proposed rule, the U.S. Department of Labor (DOL) would change the salary threshold for employees who are eligible for overtime pay from $23,660 to $50,440. This salary threshold would also be updated annually in the Federal Register.
County governments are a major employer and economic engine for workers across the U.S., employing more than 3.3 million people and providing services to over 305 million county residents. Counties provide health benefits to nearly 2.5 million employees and nearly 2.4 million of their dependents. For health insurance premiums alone, counties spend an estimated $20 to $24 billion annually.
NACo’s comments reflect our concerns about the proposed rule to increase the threshold amount for “white collar” employees’ exemption from overtime pay and the potential impact that the proposed rule could have on county budgets and administration.
The key concerns include:
- Changing the overtime pay exemptions threshold;
- Automatic annual adjustments/increases;
- The need for additional time needed for public comment.