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U.S. Department of Labor Proposes Rule to Extend Overtime to Workers Making Less than $55,068
U.S. Department of Labor Proposes Rule to Extend Overtime to Workers Making Less than $55,068
September 28, 2023
U.S. Department of Labor Proposes Rule to Extend Overtime to Workers Making Less than $55,068
Small Business Impact
Employers with previously exempt employees will have to increase these workers’ salaries to this new level ($55,068/year) to keep the employees exempt or reclassify the employees as non-exempt hourly workers and pay overtime for hours worked over 40 hours a week. DOL also plans to automatically update earnings thresholds every three years. DOL estimates that this rule will have the following Year 1 costs for small entities:- An average total cost of $4,323 per entity, with a range of total costs of $1,833-$146,781 per entity.
- Average payroll increases of $2,638 per affected entity, with an estimated range of payroll cost increases of $768-$103,871.
- Estimated costs per small entity in selected industries include construction ($4,028), retail trade ($5,210), food services and drinking places ($9,332), and nonprofit ($3,570).
Write to DOL by November 7, 2023
NFIB will be submitting a comment letter to DOL that expresses our opposition to the proposed rule. You can read NFIB’s statement on the proposal here. We encourage all small businesses owners concerned about the proposal to submit their own comment directly to DOL. You can read the proposed rule here and have until November 7, 2023, to submit a comment here. For more information or to share your concerns with NFIB, please reach out to the NFIB Legal Center by emailing us at info@NFIB.org.
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