DOL’s PROPOSED 2015 OVERTIME REGULATIONS 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? $29,172/year or a 23% increase over the current threshold. $30,004/year or a 27% increase over the current threshold. $40,352/year or a 71% increase over the current threshold. $50,440/year or a 102% increase over the current threshold. $56,316/year or a 138% increase over the current threshold. 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)? Low Level Office Staff Estimator Field Engineer Assistant Superintendent Foreman Senior Foreman Other (please specify): 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)? Low Level Office Staff Estimator Field Engineer Assistant Superintendent Foreman Senior Foreman Other (please specify): 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)? Your ability to provide merit based raises Your budget Your ability to engage in financial planning Morale because of reclassifications/wage compression/lack of merit based increases Question Title * 5. How frequently would it be reasonable to increase the minimum salary level for exempt status? 1 year 3 years 5 years 9 years Question Title * 6. How much notice for an increase would be reasonable? 90 days 180 days 1 year 2 years 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? Yes No If yes, please explain: 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")? Yes No 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? Yes No Question Title * 13. What value would you estimate? $34.19/employee (DOL estimate) $42.73/employee (25% higher) $51.28/employee (50% higher) $59.83/employee (75% higher) $68.38/employee (100% higher) VII. OTHER Question Title * 14. Will the proposed changes negatively impact employee morale and if so, how? Yes No If yes, please explain: Question Title * 15. Do you think the proposed changes will lead to an increase in litigation and legal costs and if so, why? Yes No If yes, please explain: Question Title * 16. Please provide your name and company: Name: Company: Done