NACo statement on new federal overtime rule

WASHINGTON — Today the U.S. Department of Labor (DOL) finalized a rule to amend regulations under the Fair Labor Standards Act governing the “white collar” exemption from overtime pay for executive, administrative and professional employees that would increase the salary threshold for employees who are eligible for overtime pay from $23,660 to $47,476 starting December 1, 2016. This change would more than double the current salary threshold which will now be automatically updated every three years beginning January 2020.  

Said National Association of Counties (NACo) Executive Director Matthew Chase, “While we support the Administration’s goal to improve workers’ lives, the rule does not take into account the wide fiscal and economic diversity of local communities across the country.”

Since it was first proposed last year, NACo expressed concerns about the potential impact of the rule on county governments, which employ more than 3.3 million people. County governments may experience significant unintended consequences due to the new rule, which DOL developed without consulting local government partners.

Under the rule, counties’ ability to provide public services from transportation to health, to public safety and emergency services could be compromised.

Additionally, the current constrained fiscal environment limits options and exacerbates the effect of what is essentially yet another one-size-fits-all regulation from Washington. In fact, more than 40 states limit county governments’ ability to generate revenue through caps on property taxes even when confronted with increased demand for critical services.