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

Trend Analysis: Agentic AI in Data Engineering

The modern enterprise is drowning in a deluge of data yet simultaneously thirsting for actionable insights, a paradox born from the persistent bottleneck of manual and time-consuming data preparation. As organizations accumulate vast digital reserves, the human-led processes required to clean, structure, and ready this data for analysis have become a significant drag on innovation. Into this challenging landscape emerges

Why Does AI Unite Marketing and Data Engineering?

The organizational chart of a modern company often tells a story of separation, with clear lines dividing functions and responsibilities, but the customer’s journey tells a story of seamless unity, demanding a single, coherent conversation with the brand. For years, the gap between the teams that manage customer data and the teams that manage customer engagement has widened, creating friction

Trend Analysis: Intelligent Data Architecture

The paradox at the heart of modern healthcare is that while artificial intelligence can predict patient mortality with stunning accuracy, its life-saving potential is often neutralized by the very systems designed to manage patient data. While AI has already proven its ability to save lives and streamline clinical workflows, its progress is critically stalled. The true revolution in healthcare is

Can AI Fix a Broken Customer Experience by 2026?

The promise of an AI-driven revolution in customer service has echoed through boardrooms for years, yet the average consumer’s experience often remains a frustrating maze of automated dead ends and unresolved issues. We find ourselves in 2026 at a critical inflection point, where the immense hype surrounding artificial intelligence collides with the stubborn realities of tight budgets, deep-seated operational flaws,

Trend Analysis: AI-Driven Customer Experience

The once-distant promise of artificial intelligence creating truly seamless and intuitive customer interactions has now become the established benchmark for business success. From an experimental technology to a strategic imperative, Artificial Intelligence is fundamentally reshaping the customer experience (CX) landscape. As businesses move beyond the initial phase of basic automation, the focus is shifting decisively toward leveraging AI to build