HR Policy Association and SHRM Among Critics Opposing Proposed Overtime Pay Rule

The proposed rule on overtime pay has faced significant opposition from various organizations, including the HR Policy Association and the Society for Human Resource Management (SHRM). The rule, presented by the Department of Labor (DOL), has been criticized for its rigid framework and potential negative impact on employers. This article delves into the concerns raised by these organizations and others regarding the proposed rule and its implications for the workforce.

Opposition from the HR Policy Association

As a representative body for senior human resources officers from nearly 400 corporations, the HR Policy Association has voiced its discontent with the proposed rule. The association argues that the rule adopts a one-size-fits-all framework for overtime pay, which is deemed untenable. It implores the Department of Labor (DOL) to either extensively revise or entirely withdraw the proposed rule to ensure fair and practical regulations.

Concerns about remote workers’ classification

One of the key criticisms raised by the HR Policy Association is the impact of the proposed rule on remote workers. The association argues that the rule would require thousands of remote workers to be classified as nonexempt employees, resulting in compliance issues with recordkeeping. Remote workers, who often prefer flexible work arrangements, may find it burdensome to adhere to the proposed rule’s requirements.

Perceived demotion for employees

The HR Policy Association highlights another significant concern involving the perceived demotion for employees affected by the proposed rule. The association posits that moving employees from exempt to nonexempt status could be viewed as a demotion by many, potentially leading to dissatisfaction and decreased morale among the workforce.

Criticism of the 60-day compliance window

The association also criticizes the 60-day compliance window outlined in the proposed rule. According to the HR Policy Association, this duration is inappropriately short for potentially reclassifying thousands of employees. Instead, the association recommends a 180-day compliance window to allow employers sufficient time for effective implementation. Additionally, the automatic increase in the lower salary exemption threshold every three years raises concerns for the association.

Opposition to the automatic indexing provision

The HR Policy Association argues that the Department of Labor (DOL) lacks the legal basis to adopt the automatic indexing provision and, therefore, should not include it in any final rule. Automatic indexing refers to the provision that would periodically increase the salary exemption threshold. The association asserts that removing this provision would be crucial to ensure fairness and compliance in the overtime pay regulations.

SHRM’s recommendations

Similar to the HR Policy Association, SHRM also advocates for a longer compliance window. The organization requests either a 180-day window or a delay in implementing the rule until 2025 to allow employers ample time to adjust their practices. Additionally, SHRM expresses concerns about the potential impact of the automatic threshold increases on the importance of the Fair Labor Standards Act’s (FLSA) duties test. SHRM suggests a lower initial salary threshold, considering the significant leap from the current threshold of $35,000 to the proposed $55,068.

Concerns from employer-facing law firms

Employer-facing law firms, such as Seyfarth Shaw LLP, have also weighed in on the proposed rule. These firms emphasize the disproportionate impact the rule would have on workers in rural and wage-depressed areas. They argue that the rule fails to consider the unique challenges faced by nonprofit organizations, healthcare providers, and small private colleges, among other groups. Moreover, wage compression is a concern highlighted by these law firms, as currently exempt employees may be adversely affected.

While the DOL has the authority to make changes to the proposed rule, and it is likely to face legal challenges, employers have been advised to prepare for its potential passage. The opposition from the HR Policy Association, SHRM, and employer-facing law firms underscores the need to carefully evaluate the implications of the rule on various sectors of the workforce and the potential consequences it may have on employees, remote workers, and wage disparities. As the debate continues, industry leaders, policymakers, and employee representatives must work collaboratively to find a balanced and equitable solution to overtime pay regulations.

Explore more

Agentic AI Redefines the Software Development Lifecycle

The quiet hum of servers executing tasks once performed by entire teams of developers now underpins the modern software engineering landscape, signaling a fundamental and irreversible shift in how digital products are conceived and built. The emergence of Agentic AI Workflows represents a significant advancement in the software development sector, moving far beyond the simple code-completion tools of the past.

Is AI Creating a Hidden DevOps Crisis?

The sophisticated artificial intelligence that powers real-time recommendations and autonomous systems is placing an unprecedented strain on the very DevOps foundations built to support it, revealing a silent but escalating crisis. As organizations race to deploy increasingly complex AI and machine learning models, they are discovering that the conventional, component-focused practices that served them well in the past are fundamentally

Agentic AI in Banking – Review

The vast majority of a bank’s operational costs are hidden within complex, multi-step workflows that have long resisted traditional automation efforts, a challenge now being met by a new generation of intelligent systems. Agentic and multiagent Artificial Intelligence represent a significant advancement in the banking sector, poised to fundamentally reshape operations. This review will explore the evolution of this technology,

Cooling Job Market Requires a New Talent Strategy

The once-frenzied rhythm of the American job market has slowed to a quiet, steady hum, signaling a profound and lasting transformation that demands an entirely new approach to organizational leadership and talent management. For human resources leaders accustomed to the high-stakes war for talent, the current landscape presents a different, more subtle challenge. The cooldown is not a momentary pause

What If You Hired for Potential, Not Pedigree?

In an increasingly dynamic business landscape, the long-standing practice of using traditional credentials like university degrees and linear career histories as primary hiring benchmarks is proving to be a fundamentally flawed predictor of job success. A more powerful and predictive model is rapidly gaining momentum, one that shifts the focus from a candidate’s past pedigree to their present capabilities and