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RVDA Compiling Feedback for Overtime Regulations

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RVDA is compiling feedback from members regarding Department of Labor pending regulations to expand the number of workers who qualify for overtime pay.

The Department of Labor is reevaluating overtime exemption qualifications, following an executive order from President Obama.

To be excluded from overtime pay, employees must meet certain minimum tests related to their primary job duties and be paid on a salary basis at not less than a specified minimum amount. The standard salary level required for exemption is currently $455 a week ($23,660 for a full-year worker), according to the Department of Labor.

“The RV Dealers Association will draft comments to the Labor Department in advance of a Sept. 4 deadline, and will share those comments with other associations that want to weigh in on this important labor issue,” the Association said in a news release Wednesday. “RVDA is working with the Partnership to Protect Workplace Opportunity, a business group coalition, on this issue.”

Under current labor regulations, employers are required to pay all eligible employees time-and-a-half for any hours they work in excess of 40 hours per week if they make $23,660 or less per year.

The proposed rule would more than double that salary threshold to cover all overtime-eligible workers making $50,440 or less per year.

“The central question for many companies is what, if any, changes the DOL intends to make to the duties test that is part of the executive, administrative and professional (EAP) exemption included in the original Fair Labor Standards Act of 1938,” the release states.

Since its inception, the so-called “white collar” exemption has historically excluded many salaried employees from overtime eligibility because their job duties primarily involve executive, administrative or professional duties as defined by the regulations.

For traditional RV dealers, this would not impact salesmen, since they are exempt from the overtime requirements (though not minimum wage). However, this may have an impact on service and parts personnel, depending on hours worked and how their compensation is calculated.

While the Department of Labor’s recent “Notice of Proposed Rulemaking” focuses primarily on updating the salary threshold for overtime-eligible workers, the Department is seeking comments on whether the current duties test is working as intended or needs to be modified.

As an example, the Department asks whether employees should be required to spend a certain amount of time performing work that is their primary duty in order to qualify for exemption. Some salaried RV dealership employees may perform all sorts of duties in the course of their work and it is possible that a change to this regulatory language could turn many exempt positions into overtime-eligible positions.

If you have specific concerns with this proposed rule, please share them with the RVDA’s Director of Legal & Regulatory Affairs Brett Richardson, brichardson@rvda.org.

For more information about the proposed rules, click here.

Interested companies can also submit their own written comments on the rule at www.regulations.gov on or before Sept. 4.

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