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RVDA Urges Labor Department to Consider Regional Pay Scale

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Currently the Fair Labor Standards Act guarantees overtime pay to employees that work more than 40 hours in a workweek, with exceptions to certain salaried employees.

The DOL has recently proposed an update to the regulation issued under the Act by raising the salary threshold from $455 a week ($23,660 annually) to approximately $970 a week ($50,044 annually) in 2016.

The RVDA’s comments urged the Department of Labor to take a look at regional pay differences since the cost of living in a major metropolitan area varies substantially from the cost of living in a more rural location, and therefore a uniform salary threshold for all U.S. employers is unjustified, according to a news release.

RVDA also suggested that the Labor Department proposal might cause employers to make currently exempt salaried employees into hourly employees.

RVDA is a current member of a broad coalition of businesses and associations called the Partnership to Protect Workplace Opportunity.

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