Small Business Virtual Roundtable Meetings on the Department of Labor’s Proposed Overtime Rule
TUESDAY, September 26, 2023, 1 p.m. – 3 p.m. Eastern Time
WEDNESDAY, September 27, 2023, 1 p.m. – 3 p.m. Eastern Time
Via Microsoft Teams Meeting
The Small Business Administration (SBA)’s next Office of Advocacy Roundtable will meet virtually to discuss the Department of Labor’s (DOL) Proposed Overtime Rule. DOL proposes to increase the minimum salary threshold for the “white collar” exemption under the Fair Labor Standards Act (FLSA) from $35,568 to $55,068 annually. This threshold may be increased in the final rule based on the most recent data available, possibly up to $60,209. These meetings will be held virtually using Microsoft Teams.
Send your RSVP for ONE of these meetings to Janis Reyes at Janis.Reyes@sba.gov.
A meeting link will be provided to you when you RSVP.
I. Introductory Remarks (1:00 PM – 1:20 PM)
Janis Reyes, Assistant Chief Counsel, SBA Office of Advocacy
Jessica Looman, Principal Deputy Administrator, Wage and Hour Division, DOL
Ms. Looman will provide a high-level overview of this proposed rule.
After her briefing, the agency will listen to small business concerns. Comments expressed during this roundtable do not take the place of submitting written comments to the regulatory docket. Written comments on this rule are due to DOL on November 7, 2023.
II. Input from Interested Small Entities (1:20 PM – 3:00 PM)
We would welcome your input on issues such as:
- Whether DOL’s proposed salary level threshold should be raised, and whether the DOL’s proposed threshold levels are appropriate levels for small businesses.
- The numbers of small businesses, small non-profits and small governmental jurisdictions that would be affected by this rule.
- The compliance costs of increasing the salary level to small entities, such as increasing wages and managerial costs.
- Possible regulatory alternatives that would minimize the compliance costs for small entities while achieving regulatory goals.
- The best methodology for updating the salary level and the appropriate frequency of updates.
*** Roundtable meetings are open to all interested persons and are intended to facilitate an open and frank discussion about issues of interest to small business. These meetings are off the record and not intended for press purposes. Direct quotations of presenters or attendees may not be used without direct written approval of the person(s) making the statement. All press inquiries should be sent to email@example.com. Agendas and presentations are available to all.***
Overview of Department of Labor’s Overtime Proposal
Per the SBA, on August 30, 2023, the Department of Labor (DOL) proposed a rule which will increase the minimum salary for the “white collar” overtime exemption from $35,568 to $55,068 annually (equivalent to $17.10 per hour and $26.48 per hour, respectively). To be exempt from overtime pay, workers must be paid a salary of at least $55,068 and must also meet certain job duties for executive, administrative, and professional employees. Workers with a salary below this threshold must be paid overtime if they work more than 40 hours a week. This threshold may be increased in the final rule based on the most recent data available, possibly up to $60,209 (equivalent to $28.95 per hour). DOL will also increase the total annual compensation requirement for highly compensated employees from $107,432 per year to $143,988 per year. DOL also plans to automatically update earnings thresholds every three years.
DOL estimates that this rule will have the following Year 1 costs for small entities:
- An average total cost of $4,323 per entity, with a range of total costs of $1,833-$146,781 per entity.
- One hour to read the rule.
- 75 minutes of manager costs for wage adjustment.
- Average payroll increases of $2,638 per affected entity, with an estimated range of payroll cost increases of $768-$103,871.
- Average weekly earnings for affected workers in small entities are expected to increase by about $6.91 per week per affected worker.
- DOL estimates the following costs per small entity in selected industries: construction ($4,028), retail trade ($5,210), food services and drinking places ($9,332), and nonprofit ($3,570).
- DOL estimates that small entities will spend 10 minutes to respond with automatic salary updates every three years.
Comments on this rule are due November 7, 2023.