GCCA Joins Letter to DOL on Proposed “White Collar” Wage Change
GCCA and industry partners have sent a letter to the Department of Labor outlining comments and corners surrounding the DOL’s proposed changes to the Fair Labor Standards Act (FLSA), which would raise the salary threshold for executive, administrative, professional, outside sales, and computer employee exemptions (EAP exemptions). The rule seeks to increase the minimum salary threshold by about 70%, from $684/week ($35,568 annually) to $1158/week ($60,209 annually). It would do this through an automatic elevator clause every three years. GCCA, and coalition partners believe this rule places an undue burden on employers, who would be forced to make decisions that will directly and negatively impact employees and their careers. These include:
- Harm the ability of employers to provide, and employees to take advantage of, remote work and flexible scheduling options which have become increasingly popular since being introduced during the pandemic and also help alleviate the growing childcare crisis.
- Limit career advancement opportunities for employees.
- Reduce employee access to a variety of additional benefits, including incentive pay.
- Limit employers’ ability to provide employees with mobile devices and remote electronic access, further limiting employee flexibility.
- Result in employees in the same job classification (for the same employer) being classified and treated differently based on regional cost-of-living differences, facility profitability, or other factors that impact budget.
- Force employees to be reassigned or let go as employers make operational changes needed to achieve the organization’s mission under new pay and staffing paradigms.
- Trigger declines in employee morale, particularly in cases where peers remain exempt since exempt status is often seen as a higher status.
- Increase FLSA litigation based on off-the-clock and regular rate of pay claims.
- Introduce other legal and operational issues, such as increased administrative costs.
The regulated community on multiple occasions sent their concerns to the DOL, requesting more time for comments and review, only to have their concerns rejected/dismissed. This letter once again addresses those concerns. GCCA and partners are urging the DOL to withdraw the proposal, as it is based on outdated data (1999 study of the General Accounting Office), and flawed analysis.
November 14, 2023
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