AICPA Responds to Department of Labor’s Overtime Rule

May 18, 2016

WASHINGTON (May 18, 2016) – The American Institute of CPAs (AICPA) issued the following statement by President and CEO Barry C. Melancon, CPA, CGMA, in response to the U.S. Department of Labor’s rule amending Fair Labor Standards Act exemptions from minimum wage and overtime requirements:
“The AICPA has clearly and consistently outlined its concerns that the Department of Labor (DOL) proposed rule will increase the administrative burden in complying with the regulations while dramatically increasing employers’ payroll costs.
The proposed revisions fail to modernize or streamline the regulations, are not reflective of the realities of the modern workplace and a changing workforce, and would adversely affect both employees and employers. DOL’s modifications to the rule did little to lessen the likelihood that CPA firms and countless other businesses will be forced to curtail hiring – and may even have to reduce the size of their workforce.
The changes would have an especially negative impact on smaller accounting firms and the millions of small business clients they represent that simply cannot afford to raise their salaries for exempt employees above the new proposed threshold but also cannot afford to pay overtime to exempt workers.
As a member of the Partnership to Protect Workplace Opportunity – a diverse group of stakeholders including businesses and associations that represent millions who could be impacted by the proposed rule – we urge Congress to intervene in the process so that regulations governing overtime pay reflect the evolving workplace in a manner that is not economically counterproductive.”