The U.S. Department of Labor wants to fine-tune a bill regarding overtime and is seeking input from employers. Additionally, it has made a statement encouraging states to reduce the number of professional licenses they require.
In February, Republican Alabama Representative Martha Roby introduced the Working Families Flexibility Act of 2017 (H.R. 1180), which would amend the Fair Labor Standards Act of 1938.
The Act seeks to provide private sector employees with the choice of being paid time and one-half for overtime, or receiving an equal amount of comp time. If employees decided to accept comp time, they would have to use it “within a reasonable period after making the request,” and “if the use of the compensatory time does not unduly disrupt the operations of the employer.” Employees could not take comp time until they had worked for their employers at least 1,000 hours in a 12-month period. Those opting for monetary compensation for overtime would be required to submit a written request, and employers would have to provide payment within 30 days of receiving the request.
The Flexibility Act presents a stark contrast to the Department of Labor’s overtime regulations announced in 2016, under the Obama administration. That law sought to double the salary threshold of workers entitled to overtime pay. It was due to take effect in December 2016, but was blocked by a Texas judge.
The Flexibility Act passed in the House in May and is up for a vote in the Senate.
To gather more information about employers’ views on minimum wage, overtime requirements, and the 2016 Final Rule, the DOL recently issued a Request for Information. The 11-question document reads in part:
• Should the 2004 standard salary level ($455 per week) be updated for inflation? If so, at what rate?
• Should the Department set different standard salary levels for executive, administrative, and professional exemption categories, as it did prior to 2004?
• To what extent did employers, in anticipation of the 2016 Final Rule’s effective date of December 1, 2016, increase salaries, convert worker pay from salaries to hourly wages, or make changes to workplace policies to limit employee flexibility to work after normal work hours or to track work performed during those times? Where these or other changes occurred, what has been the impact on the workplace for employees and employers? Did small businesses encounter any unique challenges in preparing for the 2016 Final Rule?
• Does the salary level set in the 2016 Final Rule exclude from exemption particular occupations that have traditionally been covered by the exemption? If so, what are those occupations? Do these employees perform more than 20% or 40% non-exempt work per week?
The deadline to submit written comments is Sept. 25, 2017.
To participate, visit federalregister.gov.
The DOL also is looking to modify licensing regulations for the American worker. At the recent Western Governors’ Association Workforce Development Workshop, Alexander Acosta, U.S. Secretary of Labor, encouraged state officials to partner together to reduce what it considers excessive licensing.
“If licenses are unnecessary, eliminate them,” Acosta said. “If they are needed, streamline them.”
He cited economic hardships and the complexities of obtaining licenses to practice certain professions.
Acosta said more than 1 in 4 American workers now need a license to work in their chosen field, and the Federal Reserve estimates that about 2 million Americans do not hold a job, or have given up their career, because of licensing issues. “Our goal should be to expand opportunities for Americans, not limit them,” Acosta said.
It isn’t yet known what kinds of licenses DOL views as unnecessary. Calls for comment were not returned.
