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

Is ChatGPT the Future of Hotel and Travel Advertising?

The transition from scanning data to seeking synthesized advice represents a permanent change in how tourism destinations and luxury resorts must approach digital visibility. As the travel industry reaches a critical juncture in 2026, the reliance on static search results has dwindled in favor of interactive, intelligent dialogue. Syndacast, a prominent agency in the Asia-Pacific region, has recognized this evolution

Can Tokenized Deposits Transform Canada’s Financial Future?

Regulated institutional trust is being combined with blockchain automation to create a foundation for a twenty-four-seven tokenized economy in Canada. This transition represents a significant departure from the traditional financial architecture that has governed the nation for decades. Historically, Canadian commercial bank deposits existed as static entries within private, siloed ledgers, requiring complex reconciliation processes and limited by the operational

How Is CyphaLab Bridging the Gap Between TradFi and DeFi?

The movement of assets between traditional brokerage systems and decentralized liquidity venues is streamlined through a specialized transaction orchestration layer. In the current economic climate of 2026, the global financial industry is witnessing a pivotal shift as blockchain technology moves beyond its experimental roots to become a core foundation of asset management. CyphaLab has emerged as a major driver of

Why Did Sequans Abandon Its Bitcoin Treasury Strategy?

The official termination of the Bitcoin treasury strategy on September 24, 2026, allowed the firm to redirect all resources toward its expanding 4G and 5G cellular solutions. This strategic pivot marked the end of a high-stakes financial journey for Sequans Communications, which had initially sought to redefine the role of digital assets within the semiconductor industry. Throughout the previous fifteen

Will AI Data Centers Define the Future of Hamilton?

The defeat of the proposed development moratorium was influenced by concerns that a blanket ban might exceed the city’s legal jurisdiction and lead to litigation. This legislative turning point has placed Hamilton at a pivotal crossroads where the burgeoning global industry of artificial intelligence (AI) intersects directly with local environmental stewardship and complex urban planning strategies. As the municipal election