Businesses be Ready: Overtime Rule Kicks in Dec. 1

Small home building firms and other businesses need to be prepared as the Department of Labor’s final rule to double the overtime salary limit from $23,660 to $47,476 will take effect on Dec. 1.

It is uncertain what the incoming Trump administration will do on overtime next year, but what remains crystal clear is that the Dec. 1 compliance deadline remains hard and fast.

This means that any professional, administrative and executive employees making under $47,476 will be due time and a half if they work more 40 hours a week. NAHB estimates that more than 100,000 construction supervisors will be newly eligible for overtime next month.

Working with House and Senate lawmakers and members of our business coalition, the Partnership to Protect Workplace Opportunity, NAHB has been spearheading effort to mitigate the effects of the overtime rule. NAHB is asking Congress to phase-in the new salary requirements, as well as provide permanent relief from the rule’s provision to automatically update the salary threshold every three years.

The Overtime Reform and Review Act (S. 3464) in the Senate and the Overtime Reform and Enhancement Act (H.R. 5813) in the House would achieve these goals. The legislation is unlikely to move forward during the lame duck session as President Obama would likely veto either measure.

NAHB joined with other business groups in filing a legal challenge to the overtime rule on Sept. 20. The lawsuit was filed in the U.S. District Court for the Eastern District of Texas. In addition, 21 states have also filed suit challenging the rule and the two lawsuits have been consolidated. The parties have filed motions for a summary judgment. NAHB is awaiting decision on the outcome of those motions.

As NAHB keeps working toward permanent relief, members need to be prepared to comply by Dec. 1. The association will continue to provide its members with the tools they need to comply with the new overtime requirements, including an FAQ document and webinar.

NAHB will also work with the Trump administration to find relief, particularly with the automatic salary threshold hikes.

For more information, contact Suzanne Beall at 800-368-5242 x8407.