Joint Trades' Letter Seeking Extension of Overtime Final Rule Implementation Date

Dear Administrator Looman:

The Partnership to Protect Workplace Opportunity (PPWO) and the 87 undersigned organizations write to request the Wage and Hour Division (WHD) extend the implementation date of the first increase to the minimum salary threshold under its new final rule altering the overtime regulations under the Fair Labor Standards Act (FLSA), published in the Federal Register on April 26, 2024 (29 CFR 541).

PPWO is a coalition of a diverse group of associations, businesses, and other stakeholders representing employers with millions of employees across the country in almost every industry. Formed in 2014, the Partnership is dedicated to advocating for the interests of its members in the regulatory debate on changes to the FLSA overtime regulations. PPWO's members believe that employees and employers alike are best served with a system that promotes maximum flexibility in structuring employee hours, career advancement opportunities for employees, and clarity for employers when classifying employees.

WHD's new rulemaking implements two increases to the minimum salary threshold under which all workers must be paid overtime. The first phase increases the minimum salary threshold from the current $35,568 to $43,888. This increase is currently set to go into effect on July 1, 2024.

WHD is providing the regulated community with only two months to analyze the rule, determine what changes to their operations and payrolls will be necessary, explain to the impacted workers how and why their pay, titles, or workplace responsibilities will change, and then implement those changes. This is an arbitrary and burdensome timeline for the regulated community to meet, especially smaller businesses that do not have the resources to make such changes quickly. We therefore request the Wage and Hour Division extend the implementation date for this increase to at least September 1, 2024, to allow employers sufficient time to understand the rule, implement the necessary alterations, and inform workers of the changes that will significantly impact them.

PPWO and the undersigned organizations urge you to extend the implementation date as quickly as possible to ensure the employer community can adjust to the new rule appropriately.

Download the comment letter to read the full text.