FLSA Overtime Regulation: SHRM Statement on Final Rule

May 18, 2016
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ALEXANDRIA, Va. — Henry G. (Hank) Jackson, president and CEO of the Society for Human Resource Management (SHRM), issued this statement on the Department of Labor’s Fair Labor Standards Act Overtime Regulation:

“The Department of Labor missed a real opportunity in finalizing the overtime rule. 

“Thousands of HR professionals expressed their concerns about the proposed rule. Although DOL responded to some of our comments, SHRM is disappointed in the dramatic increase in the salary under which employees are eligible for overtime and the automatic increases in the salary level.

“The salary threshold — although slightly less than originally proposed — will mean many employees will lose the professional ‘exempt’ status that they have worked hard for and the flexibility from rigid schedules that they care deeply about. While changes in regulations were meant to benefit employees, a change of this magnitude will do the opposite. There likely will be fewer opportunities for overtime pay as employers are forced to restructure their compensation and staffing.

 “Because of its continuing concerns about how the rule will affect employees and employers, SHRM supports the move by Congress to require the DOL to reconsider the rule.”

 What this means:

  • HR professionals are identifying which employees are affected and adjusting how they are compensated. At the same time, HR is working with other executives within their organizations to deal with the impact on their budgets and services.
  • HR in nonprofits and government offices are helping to make difficult decisions about possible cuts to services as a result of the rule’s effect on their budgets.
  • HR professionals are communicating to employees what this means for them and training employees and managers about new wage-and-hour policies.

What’s next:

  • SHRM is educating HR professionals about the change in regulations and providing employers resources as they adapt their compensation and timekeeping practices.
  • SHRM supports U.S. House and Senate bills requiring the DOL to reconsider the rule and do a more thorough economic analysis of it. SHRM is communicating with Congress about the importance of passage of H.R. 4773 and S. 2707.

Additional resource:

Media: To schedule an interview, contact Kate Kennedy of SHRM Media Relations at 703-535-6260 and Kate.Kennedy@shrm.org or Vanessa Hill at 703-535-6072 and Vanessa.Hill@shrm.org.

About the Society for Human Resource Management

The Society for Human Resource Management (SHRM) is the world’s largest HR professional society, representing 285,000 members in more than 165 countries. For nearly seven decades, the Society has been the leading provider of resources serving the needs of HR professionals and advancing the practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org and follow us on Twitter and Instagram @SHRMPress.

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