IPC: Department of Labor Releases RFI to Seek Information on Overtime Regulations


Reading time ( words)

This week, the Department of Labor (DOL) released a Request for Information (RFI) to gather additional feedback from the public on the overtime regulations, which define and delimit exemptions from the Fair Labor Standards Act’s minimum wage and overtime requirements for certain executive, administrative, professional, outside sales and other employees.

The rule, released under the Obama Administration, would have doubled to $47,000 the maximum salary a worker can earn and still be eligible for mandatory overtime pay under federal wage law, and was supposed to take effect in December 2016. However, it was blocked by a judge and a group of 21 states and business groups challenged the rule in a lawsuit filed last year.

The RFI includes questions about the role the duties test plays with respect to the salary threshold, what is the proper methodology, and whether there should be multiple salary levels to reflect different regional economies, sizes of employers, and exemptions.

From the initial release of the overtime rule, IPC had serious concerns with it. These included:

1. Compression on Other Exempt Classifications
The impact of the overtime rule will affect many of our members’ broader employee population as compliance will force compression on other exempt classifications. In other words, companies will need to raise the wages for many others as a result to preserve differentiation in compensation. This will have a significant impact on overall cost structure and international competitiveness as our members compete globally and are under constant pressure to lower costs.

2. Flexible and Unusual Work Hours
Many employees in our industry with exempt classifications work unusual hours due to the global nature of our industry. Employees willingly work these hours on behalf of the company and their own future careers. These are not “clockable” hours, which of course, leads to the reason for their exempt classification. Furthermore, the exempt classification provides employees with greater flexibility over their schedules. Rather than creating jobs, the new rule will very likely trigger a review of the mid-range jobs and if companies are better suited to limit the salaried exempt positions in lieu of hourly, and unfortunately will limit the career opportunities for many.

3. Regional Differences
Another major issue with the new rule is that it does not take into account the regional differences. Many of our members generally work with consistent salary classifications across the company, but focus on maintaining salary competitiveness in the local area of their facilities. The blanket approach by the DOL does not take these regional differences into account and neglects differentials to pay a locally competitive wage/salary.

IPC believes that the DOL effort to address job classification and overtime was well-intended, but it failed to consider the vast differences across the nation as the final rule takes a “one-size-fits-all” approach that will put significant economic strain on businesses.

IPC encourages its members who have concerns or issues with the overtime rule to review the RFI and submit comments to DOL. IPC is a member of the Partnership to Protect Workplace Opportunity (PPWO) coalition, which is dedicated to advocating for the interests of its members in the regulatory debate on changes to the Fair Labor Standards Act (FLSA) overtime regulations. PPWO will submit comments to DOL regarding the RFI and IPC plans to be a signatory with other members of the coalition. The RFI is available here and the comment period ends on September 25, 2017.

Share

Print


Suggested Items

Real Time with…SMTAI 2020: ASC Makes Lemonade Out of Lemons

09/25/2020 | Real Time with...SMTAI
Steve Williams and Anaya Vardya, president and CEO of American Standard Circuits (ASC), discuss the upcoming virtual SMTAI show and how the company is “making lemonade out of lemons.” As they point out, there may be no face-to-face interaction, but virtual shows are open to attendees from around the world with no travel or hotel costs. Anaya explains how the COVID-19 lockdown has caused ASC to become more creative in its marketing efforts, including holding webinars and publishing two eBooks with I-Connect007. They also discuss ASC’s holistic approach to the marketplace, with a diversified product mix across various segments.

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

09/25/2020 | Andy Shaughnessy, Design007 Magazine
In this week’s picks, we bring you news about the upcoming SMTA International 2020, IPC’s plans for the fall, a move for Burkle North America’s headquarters, and advice on how to select the correct CAD tool. And we have the first installment of our newest series: “Just Ask John Mitchell.”

Just Ask John Mitchell: Advice on Selling Tech in Asia

09/24/2020 | I-Connect007 Editorial Team
First, we asked you to send in your questions for Happy Holden, Joe Fjelstad, and Eric Camden in our “Just Ask” series. Now, it’s IPC President and CEO John Mitchell’s turn! A regular PCB007 columnist, John focuses on many of the challenges affecting the global electronics industry supply chain. Over the years, he has served as an engineer, manager, and executive at a variety of companies and organizations. We hope you enjoy “Just Ask John.”



Copyright © 2020 I-Connect007. All rights reserved.