The American Institute of CPAs (AICPA) joined 163 other organizations, including a number of state CPA societies, in signing a coalition letter asking members of Congress to contact the U.S. Department of Labor (DOL) and others to urge them to reconsider the overtime rule changes proposed by the DOL on June 30. The contentious proposed changes to the current overtime exemptions for executive, administrative and professional employees to the Fair Labor Standards Act’s overtime pay requirements would see the salary level required to qualify for the overtime exemption more than double from $455 per week or $23,660 annual salary to $970 per week or $50,440 in annual salary. (For more details about the proposal, read the story in the September issue of The CPA Advocate.)
The December 7 Partnership to Protect Workplace Opportunity (PPWO) letter states that “the magnitude of DOL’s proposal, coupled with the annualized automatic increases with no feedback from employers, and the changes to the duties test that DOL is considering, threaten businesses, employees, non-profits, state and local governments, and the economy as a whole.” The PPWO includes a diverse group of stakeholders including businesses and associations that represent millions who could be impacted by the proposed rule.
DOL received close to 300,000 comments on the proposed rule – an unprecedented number – including one from the AICPA. The AICPA’s September 3 letter cited the proposed rule’s detrimental effect on both employees and firms within the profession. The following day, the AICPA joined the PPWO comment letter, which complemented the concerns expressed by the AICPA regarding the impact to business and the workforce across many industries and in the marketplace should the rule take effect.
A final rule, followed by an implementation period, is expected no earlier than this coming summer.