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Department of Labor’s New Rule Hurts All

By Joy Krieger

As the director of the Asthma Allergy Federation of St. Louis, I work tirelessly within our limited resources to help provide essential services to the most vulnerable members of our community. This is why I’m deeply concerned with the Department of Labor’s published rule updating the Fair Labor Standards Act and raising the salary threshold for overtime exemption. While I understand the need to update the threshold periodically, the increase announced today takes that from $24,000 to $47,000. This increase is based on the 40th percentile of full-time salaried workers, and goes too far too quickly. I’m saddened knowing these changes will have a devastating impact on our budget and those of many non-profits, educational institutions, and local organizations by limiting their ability to provide essential services to their communities. It time for Congress to act and require the Department of Labor to redo this devastating rule.

The non-profit sector and organizations like my own will be particularly hard hit by these changes that increase the salary. The unintended consequences of the rule will require nonprofit leaders to punch a clock and count their hours — making sure not to go above 40 hours a week knowing they don’t have the budget to pay their staff let alone themselves overtime. This means that many non-profits will have to begin cutting back on the community services they provide.

This massive increase to the exemption threshold put forward by the Department of Labor sets a national standard that goes far beyond any current state level and fails to take into account how wages vary regionally. This rule change will automatically raise the threshold every 3 years, tying the overtime exemption threshold to the 40th percentile of salaried workers. These volatile and dramatic increases will leave organizations like mine little to no time to adjust our limited budgets accordingly.

The magnitude of the new changes to the salary threshold by the Department of Labor is unprecedented. I urge Congress to take action and intervene. I urge our elected leaders in D.C. to step in and find a bipartisan solution. Currently there is legislation being considered in Congress that will reverse the rule change and require the Department of Labor to revisit the rule’s impact.

Joy Krieger is the Executive Director of the Asthma and Allergy Federation of St. Louis, a non-profit organization. The Asthma and Allergy Foundation of America, St. Louis Chapter serves those affected by asthma and allergies through education, support and resources.