NACo Concerned About County Impact of New Federal Overtime Rule

A NACo County News article (2016-05-27) highlighted NACo’s concern over the potentially significant impact a new federal overtime rule could have on counties and their budgets. The final rule from the United States Department of Labor reduces the overtime exemption for “white collar workers. Starting December 1, 2016, overtime will be required for executive, administrative, and professional employees who earn $47,476 per year or less. The previous threshold was $23,660 or less. From the article:

Implemented over a one-year period [the overtime requirement] could present serious budgetary and administrative challenges to county governments, according to preliminary NACo analysis.

The new rule also establishes a mechanism for automatically updating the salary and compensation level every three years, beginning January 2020, to prevent levels from becoming outdated. The final rule does not change any of the existing job duty requirements, or duties test, to qualify for exemption. The rule would affect an estimated 4.2 million workers across the United States who are currently exempt from overtime requirements.

“While we support the Administration’s goal to improve workers’ lives, the rule does not take into account the wide fiscal and economic diversity of local communities across the country,” said NACo Executive Director Matt Chase.

Useful Links

The Overtime Rule (U.S. Department of Labor)

Prior Conduit Street Coverage of Overtime Rule