The American Bankers Association and dozens of business organizations today asked the Labor Department to extend by 60 days the comment period for its proposal to increase the number of employees who are subject to overtime and minimum wage requirements. In a joint letter, the groups noted the proposed rulemaking includes a nearly 55% increase in the minimum salary threshold and automatically updates the threshold every three years. Additional time is needed for regulated entities to analyze the potential effects of the department’s proposal on their operations and the broader economy, they said.
In August, the Labor Department’s Wage and Hour Division proposed that employees who earn up to $1,059 per week, or $55,068 annually, would automatically be subject to federal overtime and minimum wage requirements. Current regulations issued in 2019 set the salary level at $684 per week, or $35,568 annually. Above that level, an employee may be exempted from federal overtime and minimum wage requirements if the employee performs certain duties. The agency gave the public until Nov. 7 to comment, which ABA and the other groups argued isn’t enough time given the ramifications of the rulemaking.
“Federal case law discusses that the public needs ‘a reasonable and meaningful’ opportunity to comment,” the groups said. “Given the magnitude of this rule, an additional 60 days is reasonable and will ensure WHD will receive meaningful information, such as more accurate and informative comments and better understand how the economy and workers will be impacted by the changes being considered.”