On August 30, 2023, the Department of Labor issued its notice of proposed rulemaking altering the overtime pay regulations under the Fair Labor Standards Act. The proposal increases the minimum salary threshold and automatically updates the threshold every three years.

“We’re disappointed DOL has decided to move forward despite repeated requests from PPWO and the regulated community to abandon or at least delay the rulemaking until the economy stabilizes,” said Josh Ulman, spokesman for the Partnership to Protect Workplace Opportunity. “Right now, we’re still recovering from the COVID-19 pandemic’s impact as we face continued inflationary pressure as well as a cooling job market.

“DOL is proposing a nearly 55% increase to the minimum salary threshold. Massive increases in labor costs like this simply cannot be absorbed by businesses. Meanwhile, automatic increases are unlawful and will set up the economy for failure, as increases will occur regardless of economic circumstances, exacerbating any problems that may exist.

“This rulemaking will lead to a substantial reduction in access to entry level executive, administrative, and professional salaried positions. It will reduce opportunities, especially for recent graduates and younger professionals hoping to begin their careers.

“All in all, this is poorly timed and will do harm to those it intends to help.”