The South Carolina Association of CPAs (SCACPA) continues to work to soften the blow of the U.S. Department of Labor’s (DOL) overtime rule that will take effect later this year.
The rule, announced by DOL in May, includes a salary threshold increase for white-collar salaried employees. The increase will double the current threshold of $23,660 to $47,476 on December 1, giving employers little time to determine how best to comply with the mandate.
SCACPA has been actively engaged in exploring ways to make the rule less disruptive to businesses here and throughout the nation. One option is the Overtime Reform and EnhancementAct (OREA), H.R. 5813, sponsored by U.S. Rep. Kurt Schrader (D-Ore.).
H.R. 5813 would absorb some of the compliance burden placed on employers and their employees by implementing a framework for gradual increases. The measure would build up to the full threshold envisioned by DOL in December of 2019, providing three full years for firms and companies to better plan how to absorb the increase. Additionally, H.R. 5813 would eliminate the automatic update provision of the overtime rule, preventing DOL from setting a new salary threshold without public input.
OREA has the backing of nearly 100 organizations, including the American Institute of CPAs.
The South Carolina Association of CPAs (SCAPA) has sent letters of support on H.R. 5813 and asked Congressional delegation members to cosponsor the bill as it will provide needed regulatory relief to firms and their employees in South Carolina.
“We applaud the effort to make the overtime rule more reasonable,” said Penny Lewis, Chair. “Phasing in the changes will allow businesses to more easily absorb the impact. It would be far less disruptive to the way they operate and their employees are paid. I encourage South Carolina members to express their support for H.R. 5813 when they communicate with their member of congress. The time to act is now.”