WASHINGTON (Aug. 30, 2016) — The Tire Industry Association (TIA) has thrown its support behind a bill that would phase in the overtime pay thresholds established in May 2016 by the U.S. Department of Labor.
The final rule from the Labor Department raised the salary threshold for salaried employees to $47,476 from $23,660, the level at which the threshold had stood since 2004. The new level becomes effective Dec. 1.
H.R. 5813, the Overtime Reform and Enhancement Act, calls for the overtime pay threshold to increase to each year on Dec. 1 until the $47,476 threshold his reached on Dec. 1, 2019. Incremental increases would be scheduled as follows:
- $35,984 on Dec. 1, 2016;
- $39,780 on Dec. 1, 2017;
- $43,628 on Dec. 1, 2018; and
- $47,476 on Dec. 1, 2019.
The bill also would eliminate a provision in the DOL standard that would allow automatic updates in the salary threshold every three years.
In its Weekly Legislative Update, TIA notes that H.R. 5813 would give small businesses, universities and non-profits time to adjust to the new thresholds while ensuring that salaried workers receive fair compensation.
“The current salary threshold of $23,660 is woefully inadequate,” TIA said, “and an update to the overtime rules for white-collar salaried employees has been long overdue."