Statement from SHRM on DOL’s Proposed Changes to the FLSA Overtime Regulation


June 30, 2015

ALEXANDRIA, Va., June 30, 2015 — The Society for Human Resource Management (SHRM) issued this statement about the Department of Labor’s (DOL) Proposed Changes to the Fair Labor Standards Act (FLSA) Overtime Regulation:

While SHRM appreciates the need to ensure the regulations governing overtime protections keep pace with the evolving workplace and economy, we are very concerned that the DOL’s proposed rule will further exacerbate an already complicated set of regulations for employers and employees.

This is a comprehensive proposal, and SHRM will closely analyze the DOL’s proposed changes. However, it is clear that this rule will affect nearly every employer in every industry and sector.

Specifically, SHRM supports the need to adjust the salary basis level under the regulations. However, more than doubling the salary threshold will significantly impact employers and employees and will disproportionately affect the non-profit and service sector industries, as well as certain geographic areas of the country.

In addition, the proposed rule did not make changes to the duties test, but asks a series of questions. We remain concerned that changes the Administration may make to the primary duty test will undoubtedly result in highly compensated, professional employees losing their exempt status, and the flexibility, opportunity for career advancement, and autonomy it affords. This means more employees will have to track their time while adhering to rigid schedules, with limited opportunities for workplace flexibility, all of which will have a significant impact on employee morale.

In the coming weeks, SHRM will submit comments about the proposed regulations to DOL.

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