NCBA supports overtime rule exemptions

Letter sent in support of Overtime Reform & Review Act, which would provide relief from DOL's final overtime rule.

The National Cattlemen's Beef Assn. (NCBA) has joined with other business groups in sending a letter supporting the Overtime Reform & Review Act (S. 3464). The act would provide employers and small businesses with relief from the negative impacts of the U.S. Department of Labor's final overtime rule.

Under the DOL's final rule, the salary threshold for determining overtime pay for executive and professional employees exempt from regular minimum wage and overtime pay requirements would increase more than 100%. This would challenge many small and rural businesses and diminish flexibility in structuring employee hours and career advancement opportunities.

While a responsible increase to the salary threshold is due, the Overtime Reform & Review Act would protect small and large businesses, nonprofits, local governments and academic institutions by phasing in increases over five years. The legislation would immediately raise the amount to $36,000 and continue to raise the exempt employee salary threshold to $47,476 by Dec. 1, 2020. Equally important, the bill prohibits the DOL final rule's automatic increase to the salary threshold but still allows DOL to propose changes to overtime regulations in the future through the customary federal notice and comment process.

The bill also specifies that increases after 2016 would not go into effect for the most vulnerable employers, nonprofits, colleges and universities, Medicare and Medicaid-dependent health care providers and state and local governments unless the Administration can certify that the 2016 increase did not negatively affect these organizations.

NCBA also supported House passage in September of that chamber's version of this legislation, the Regulatory Relief for Small Businesses, Schools & Non-Profits Act (H.R. 6094).

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