Rural Water - Quarter 4, 2018 - 20
with the U.S.
Employers have told the U.S.
Department of Labor (DOL) that it's OK
to increase the salary threshold for the
white-collar exemptions from overtime
requirements-but not by too much. The
comments came in the first of four listening
sessions held around the country. The final
one was September 24 in Providence, R.I.
Increases in the salary threshold
mean employers will likely pay more
overtime after reclassifying formerly
FOURTH QUARTER 2018
exempt employees as nonexempt, raise
employees' pay to keep them exempt
or reclassify employees as nonexempt
but limit their hours so they aren't paid
overtime. For employers, these choices
could be expensive and unpopular.
The threshold currently is $23,660,
where it has been since 2004. The Obama
administration overtime rule, which a
court blocked, would have increased it to
$47,476. The Society for Human Resource
Management (SHRM) supports an increase
to the exempt salary threshold, but not too
much, too fast.
"It's very clear that all speakers agreed
the current threshold is too low," said
Nancy Kasmar, SHRM-SCP, principal with
Compensation Connections in the Seattle
area, who attended the September 11
listening session in Seattle.
The Obama administration's overtime
rule would have made the duties tests
BY ALLEN SMITH, J.D.