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US Dept of Labor New Overtime Rule

Posted by Communications Department on Thursday, August 4, 2016

Provided by the National Apartment Association


 NAA/NMHC have released guidance (link posted below, login required) for the apartment housing industry on the Labor Department's overtime rule.  

Prepared by Jennifer Redmond and Brian Fond from the law firm of Sheppard Mullin, the guidance describes the rule in detail and provides issues for owners, operators and developers of apartment housing to consider as they seek to comply with the new rule. Effective Dec. 1, the rule lifts the overtime pay threshold from $23,660 to $47,476 and is expected to impact 4.2 million executive, administrative and professional employees who are paid by the hour or earn less than the new threshold.    

The overtime rule would harm the ability of apartment housing employers to implement, and their impacted employees (including property managers at traditional apartment and student housing developments) to take advantage of flexible scheduling options. In addition, it would limit career advancement opportunities for employees. The rule also goes far beyond the apartment housing industry and has the potential to affect employees at colleges and universities who serve student housing residents.  

NAA/NMHC strongly oppose the overtime rule and are supporting all avenues that would either repeal or limit the rule. On July 14, immediately before adjourning for the summer recess, the House Appropriations Committee passed funding legislation that would prevent the Obama Administration from implementing the overtime rule.      

In addition to Appropriations Committee action, Rep. Kurt Schrader (D-OR) introduced the Overtime Reform and Enhancement Act TRACKCUSTLINKZon July 14. This legislation would require the Labor Department to phase-in the overtime pay threshold over three years so that it would be fully effective beginning Dec. 1, 2019. It would also eliminate automatic adjustments to the pay threshold. NAA/NMHC sent a letter to Representative Schrader endorsing the measure.  

Currently, the outlook for overturning the overtime rule is uncertain. On the appropriations front, many observers believe that Congress will be forced to pass a short-term spending bill in September to fund the government until after the election. This could leave decisions on the overtime rule for the end of the year or the next Administration. Representative Schrader’s bill may emerge as a viable compromise on the overtime rule if it is able to attract Republican support in both the House and Senate. 


NAA/NMHC guidance for the apartment industry on the Labor Department's overtime rule link: http://www.naahq.org/learn/government-affairs/federal-state-local-issues/labor-and-employment/congress-takes-action-harmful-rules?utm_source=Informz&utm_medium=Email&utm_campaign=Change%20Campaign%20name 

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