IPMA-HR and IMLA Submit Second Round of Comments on the Department of Labor's Proposed Rulemaking on Overtime Pay

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The International Public Management Association for Human Resources (IPMA-HR) and the International Municipal Lawyers Association (IMLA) submitted a second round of comments on the Notice of Proposed Rulemaking issued on July 6, 2015 by the U.S. Department of Labor to amend the Fair Labor Standards Act (FLSA) regulations implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees.

The proposed increase in the salary basis test from $455 per week to $970 per week is too steep and consideration should be given either to lowering it or phasing it in over several years.

On September 3, the International Public Management Association for Human Resources (IPMA-HR) and the International Municipal Lawyers Association (IMLA) submitted a second round of comments on the Notice of Proposed Rulemaking issued on July 6, 2015 by the U.S. Department of Labor to amend the Fair Labor Standards Act (FLSA) regulations implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees.

Below are highlights from the letter:

1) State and local governments have a strong commitment to complying with all employment laws and regulations. There is a need to recognize how work in the 21st century is performed and to provide a system that includes flexibility in setting employee hours and offering opportunities for advancement, while making it easier for public employers to classify employees.

2) The proposed increase in the salary basis test from $455 per week to $970 per week is too steep and consideration should be given either to lowering it or phasing it in over several years.

3) Given the difference in the cost of living in the United States, the Labor Department should consider locality adjustments.

4) The proposed automatic annual indexing of the salary basis test is unprecedented and has not been authorized by the Congress.

5) Since the proposed regulations do not include any revisions to the duties tests, we strongly opposed any modifications being made without the publishing of another notice of proposed rulemaking and a new public comment period.

6) Any changes to the duties tests should not include any arbitrary percentage standards that must be met in order for employees to be considered exempt.

The full letter is available for download.

If you have questions about the comments, please contact Executive Director Neil Reichenberg at nreichenberg(at)ipma-hr(dot)org.

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Jenny Chang
IPMA-HR
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