PIA Expresses Concerns Following Release of DOL Overtime Rule
April 25, 2024WASHINGTON -- The National Association of Professional Insurance Agents (PIA) expressed continuing concerns following the release on April 23 of the U.S. Department of Labor’s (DOL’s) final rule governing worker eligibility for overtime in accordance with the Fair Labor Standards Act (FLSA).
“The overtime rule revisions place an increased burden on America’s small businesses, which form the engine that powers our economy,” said Lauren G. Pachman, Esq., PIA’s Counsel and Director of Regulatory Affairs. “We should be making business operations easier by decreasing regulations and reducing costs, not adding to them. PIA expects the DOL’s action will dramatically and negatively affect businesses, the workers they hire, and the consumers they serve.”
The rule will become effective on July 1, 2024 and will be implemented in two phases for both categories of affected workers: minimum wage earners and “highly compensated employees” (HCEs). Phase 1 is scheduled to begin on July 1, 2024; Phase 2 is planned for January 1, 2025. The final rule also establishes a new system by which future threshold updates will be made automatically.
DOL’s rule change could force the reclassification of millions of employees from salaried to hourly workers and result in fewer opportunities for advancement. Because the revision is likely to increase the pool of hourly wage workers eligible for overtime pay, it could prompt many employers to eliminate benefits and advancement opportunities for workers who have historically been classified as “exempt,” to allow employers to avoid having to extend those benefits to their newly enlarged pool of exempt workers. The DOL’s rule change will likely cost employers more money and make it more difficult to hire and retain workers.
“PIA expressed its opposition to the proposed overtime rule revisions throughout the review process, and our many concerns were not addressed by the DOL,” said Pachman. “PIA will continue to support efforts to delay the effective date of the final rule and discourage the DOL from implementing it.” Read PIA’s blog post on the DOL overtime rule.
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes, and businesses. PIA’s web address is www.pianational.org.
“The overtime rule revisions place an increased burden on America’s small businesses, which form the engine that powers our economy,” said Lauren G. Pachman, Esq., PIA’s Counsel and Director of Regulatory Affairs. “We should be making business operations easier by decreasing regulations and reducing costs, not adding to them. PIA expects the DOL’s action will dramatically and negatively affect businesses, the workers they hire, and the consumers they serve.”
The rule will become effective on July 1, 2024 and will be implemented in two phases for both categories of affected workers: minimum wage earners and “highly compensated employees” (HCEs). Phase 1 is scheduled to begin on July 1, 2024; Phase 2 is planned for January 1, 2025. The final rule also establishes a new system by which future threshold updates will be made automatically.
DOL’s rule change could force the reclassification of millions of employees from salaried to hourly workers and result in fewer opportunities for advancement. Because the revision is likely to increase the pool of hourly wage workers eligible for overtime pay, it could prompt many employers to eliminate benefits and advancement opportunities for workers who have historically been classified as “exempt,” to allow employers to avoid having to extend those benefits to their newly enlarged pool of exempt workers. The DOL’s rule change will likely cost employers more money and make it more difficult to hire and retain workers.
“PIA expressed its opposition to the proposed overtime rule revisions throughout the review process, and our many concerns were not addressed by the DOL,” said Pachman. “PIA will continue to support efforts to delay the effective date of the final rule and discourage the DOL from implementing it.” Read PIA’s blog post on the DOL overtime rule.
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes, and businesses. PIA’s web address is www.pianational.org.