NLBMDA: Not so fast on overtime expansion

A bill to delay a proposal that would dramatically open the door for overtime pay for more employees hit Congress this week. And the National Lumber and Building Material Dealers Association gave its immediate approval.

The NLBMDA applauded the introduction of the Protecting Workplace Advancement and Opportunity Act in the House of Representatives and Senate. Introduced by Rep. Tim Walberg (R-MI) and Sen. Tim Scott (R-SC), the legislation requires the Deportment of Labor to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employers.

 The bill is response to the Department of Labor’s Wage and Hour Division proposal to increase the salary levels that determine employee exemption from overtime pay.

Under the proposal, salaried employees making less than $50,440 per year would be eligible for overtime pay. The current trigger is $23,360 -- if they make more than that, they aren’t eligible for overtime.

Earlier this week, DOL sent a final rule to the White House's Office of Management Budget (OMB) for review. OMB's Office of Information of Regulatory Affairs (OIRA) is required to take a minimum of 30 days reviewing the regulation. Upon completion of the review by OIRA, DOL will either publish a final rule or further revise the rule. NLBMDA has requested a meeting with OIRA regarding DOL's overtime proposal and also plans to submit comments on the rule. DOL is expected to publish a final rule as soon as late-April.

"Lumber dealers are pleased with the action taken by Congressman Walberg and Senator Scott," said NLBMDA President and CEO Jonathan Paine. "NLBMDA encourages Congress to delay the final rule until DOL conducts a comprehensive economic analysis as recommended by the Obama Administration's Small Business Administration."