ABC is surveying its membership to determine the impact of the overtime proposal on ABC contractors. Please take 10 minutes to complete the following 15 question survey to the best of your ability before the deadline of COB on August 21st. Responses to this survey will be kept anonymous and will help ABC comment on the proposal.
I. THE PROPOSED BASE SALARY LEVEL
Currently, employers are not required to pay overtime (time-and-a-half) to salaried white collar workers who earn over $23,660/year assuming the duties test is met. DOL has proposed increasing that threshold to $50,440 as of 2016, which is the 40th percentile of earnings for all full time salaried workers. This is a 102% increase in the salary threshold. The Department of Labor (DOL) considered several other alternative salary thresholds, for more information on the alternatives click here.

Question Title

* 1. Which level do you think DOL should use?

II. IMPACT OF RECLASSIFICATION ON EMPLOYEES

Question Title

* 2. Which positions are currently non-exempt and subject to overtime in your company (select all that apply)?

Question Title

* 3. If the base salary is raised to $50,440 a year, which positions would be affected and most likely need to be reclassified (select all that apply)?

III. ANNUAL INCREASES TO THE MINIMUM SALARY
From 1938 through 1975, DOL updated the salary level every 5-9 years. Following 1975, however, updates to the salary level have been infrequent: 30 years (from 1975 to 2004) and 11 years (2004-2015) to the current proposed update. As a result, DOL proposes to automatically increase the minimum salary level on an annual basis.

Question Title

* 4. Do you think annual increases to the minimum salary level will negatively impact any of the following (check all that apply)?

Question Title

* 5. How frequently would it be reasonable to increase the minimum salary level for exempt status?

Question Title

* 6. How much notice for an increase would be reasonable?

Question Title

* 7. How much of a hardship will 60 days notice (DOL proposes to provide the public a 60 day notice of the minimum salary change for the upcoming year) present as far as determining how to alter operations in light of reclassifications that may be necessary?

Question Title

* 8. Please explain any changes you will make to your operations or on how you classify employees as a result of the automatic updates proposed by DOL.

V. POTENTIAL REVISIONS TO THE DUTIES TEST
Although DOL is not currently proposing a change to the duties test, they request comments on whether there should be changes.

Question Title

* 9. Should DOL make any changes to the primary duty test?

Question Title

* 10. Should DOL impose any type of time percentage threshold for the duties test (i.e., a test similar to California’s “exempt employees must perform exempt duties more than 50% of the time")?

Question Title

* 11. Explain how eliminating the concurrent duties test (i.e., the provision in the regulations that allows exempt employees to concurrently perform exempt and non-exempt work such as a manager who supervises employees and serves customers at the same time) would impact your institution.

VI. IMPLEMENTATION COSTS
The DOL requests that commenters provide any data regarding the amount of time that will be required to review and comply with the proposed regulations. The DOL has estimated that the implementation costs will be:

One hour per affected employee ($34.19 per employee) to make the applicable adjustments, including determining an employee’s exemption status, notifying employees of policy changes, and updating payroll systems (Adjustment Costs).

Question Title

* 12. Is DOL’s estimate accurate?

Question Title

* 13. What value would you estimate?

VII. OTHER

Question Title

* 14. Will the proposed changes negatively impact employee morale and if so, how?

Question Title

* 15. Do you think the proposed changes will lead to an increase in litigation and legal costs and if so, why?

Question Title

* 16. Please provide your name and company:

T