NAB Supports Three Year Phase-In Of New Overtime Pay Rule
July 15, 2016 at 5:56 AM (PT)
Not too many radio folks receive overtime pay, but that could change as Congressman KURT SCHRADER (OR-5), Congressman JIM COOPER (TN-5), Congressman HENRY CUELLAR (TX-28) and Congressman COLLIN PETERSON (MN-7) introduced legislation that will initiate a three-year phase-in of the DEPARTMENT OF LABOR’s new overtime rule. The new rule, proposed in MAY, raises the threshold for employees who are exempt from overtime pay from $23,660 to $47,476, and goes into effect immediately on THURSDAY, DECEMBER 1st, 2016. The OVERTIME REFORM AND ENHANCEMENT ACT will incrementally phase in the new threshold of $47,476 over the next three years, beginning with a 50% increase this DECEMBER. As the final threshold more than doubles, this is the first time since 2004 that the threshold for overtime exemption will be raised.
“The current overtime threshold is horribly outdated and needs to be raised as both employees and employers navigate our changing economy. This bill will do exactly that without disrupting the way businesses operate and employees are paid,” said Congressman SCHRADER. “Since the DOL’s immediate phase-in date was announced, we’ve heard from business owners and their employees who are worried about implementing this increase overnight. Without sufficient time to plan for the increase, cuts and demotions will become inevitable, and workers will actually end up making less than they made before. It’s long past time we strengthen overtime pay protections for AMERICAN workers in a meaningful and effective way.”
NAB EVP/Communications DENNIS WHARTON commented, “NAB appreciates Rep. SCHRADER and his colleagues' efforts to ease the burden of the DEPARTMENT OF LABOR’s overtime pay rule by phasing it in over three years. Broadcasters are committed to creating well-paying jobs in their local communities but share the widespread concern that the overtime rule could have a devastating impact on our day-to-day operations and the audiences we serve. We will continue to work with members of CONGRESS on common-sense approaches to this issue that benefit all stakeholders.”