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NAA Seeks Your Input on Overtime Rules

Overtime Rules

The Department of Labor has issued a notice of proposed rule-making and request for comments on changes to the regulations issued under the Fair Labor Standards Act (FLSA) that cover who is exempt from overtime pay within certain categories of employees. The Administration estimates that some five million workers would fall under this rule within the first year. NAA needs to determine the scale and scope of impact of this proposed rule on the apartment housing industry so we can appropriately comment.

Who is and who is not exempt for purposes of overtime pay under the FLSA rules depends on certain tests related to the primary job duties of executiveadministrativeprofessionaloutside sales, and computer employees and the amount that they are paid. This proposed rule primarily focuses on the latter item, specifically updating the salary and compensation levels used to determine who can be considered exempt. The current threshold is $455 per week ($23,660 per year) while the new threshold would be $970 per week ($50,440 per year) in 2016.  To be considered exempt from overtime, an employee must make not less than the salary threshold and meet the tests regarding their primary job duties for that particular category of position.

Comments are due on or before September 4, 2015. The links above provide lots of background material on the proposal, but you can also contact Greg Brown with any questions. Please take some time to consult with members and colleagues and share any feedback or data you receive with Greg by August 14.