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August 2017  

Legislative Update

Our Illinois SHRM Lobbyist, Jay Shattuck, sent out a request for input related to the DOL overtime ruling. If you would like to send your comments to Jay, his email address is jay@shattucklobbying.com.  Jay's comments and request are as follows:

 

"Last week the U.S. Department of Labor published in the Federal Register an RFI seeking input on how it should move forward with a new rulemaking to replace the Obama administration regulation.  As you’ll recall, the Obama rule is currently blocked from going into effect by a preliminary injunction issued November 22 by federal district Judge Amos Mazzant in Texas.  The administration has filed its final brief in the appeal of that ruling and has argued that the Secretary has the legislative authority to issue a salary threshold (some have read the Mazzant decision to say that there is no such legislative authority), but that the salary threshold set by the Obama administration was inappropriate.  The RFI is the first step in that rulemaking to set a new salary threshold.

 

The RFI consists of 11 questions that cover a wide variety of issues related to determining which employees should be exempt from the requirement to pay overtime compensation.  Among these are:

  • What methodology should be used for setting the salary threshold, and relatedly, should the 2004 threshold just be updated for inflation?
  • Should there be changes made to the duties test, and should the salary test be eliminated in favor of a duties-only test for exemption?
  • Should there be multiple salary levels to account for geographic, employer size, or some other difference?
  • Should there be different salary levels for different exemptions?
  • How should bonuses and incentive payments such as commissions be treated?
  • Should the salary level be automatically updated?

 

Comments are due September 25, 2017. The Illinois Chamber will be submitting comments as we did back in 2015 with the Assistance of the Committee. Please provide me any thoughts you may have by Friday, September 1.

Jane Murtaugh

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