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PIA Expresses Concern on DOL Overtime Rule

PIA is expressing concern that a new Department of Labor rule relating to overtime will have negative consequences for employers. The rule was issued last week, and will take effect in December...
May 25, 2016

PIA is expressing concern that a new Department of Labor (DOL) rule relating to overtime will have negative consequences for employers. The rule was issued last week, and will take effect in December. It raises the salary threshold below which most salaried workers are entitled overtime to $913 per week, or $47,476 annually for full-time workers. The previous threshold was at $455 per week, or $23,660 annually. The new level—an enormous 113 percent increase—will be revisited every three years, and will be maintained at the 40th percentile of full-time salaried workers.

On September 4, 2015, PIA filed formal comments with the DOL in opposition to the change, as part of the rule-making process. Our filed comments were based on a survey of PIA members who reside in higher cost of living areas; our survey was conducted during July and August, 2015,

“This considerable increase will negatively impact our member agencies’ employees and put a strain on the operation of their small businesses,” PIA stated, suggesting that the threshold be pared back. PIA also participated in the Partnership to Protect Workplace Opportunity (PPWO), which is composed of over 100 other organizations representing small businesses across the country, including the American Insurance Association (AIA) and the National Association of Insurance and Financial Advisors (NAIFA).

 

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