Update on Overtime Rules

25 Oct 2016 1:08 PM | Colleen Corrigan (Administrator)

There is an uptick in correspondence regarding the U.S. Department of Labor’s new overtime requirements, which are set to take affect this December 1st.  The new requirements are complex, and we want to provide you with the most up-to-date and concise information you need about the new rules.

In just a few short weeks, all employers will be required to comply with the new overtime requirements, which double the salary limit for professional, administrative, and executive employees from $23,660 to $47,476 this December 1st.  This means that anyone making under $47,476 will be due time and a half if they work over 40 hours per week.  We estimate that over 100,000 construction supervisors will be newly eligible for overtime this December.  HBAs, non-profits, and other types of employees, like designers, will be impacted, as well.

NAHB has been spearheading our stakeholder coalition’s efforts to mitigate implementation of the rule, with an eye towards permanent relief.  While the U.S. Department of Labor is required by law to update the salary threshold from time to time, a doubling of the threshold all at once is too much and too fast. 

NAHB is asking Congress to phase-in the new salary requirements, as well as provide permanent relief from the rule’s provision that the agency to automatically update the salary threshold every three years.  The Overtime Reform and Review Act (S. 3464) in the Senate and the Overtime Reform and Enhancement Act (H.R. 5813) in the House would achieve these goals.  Members are urged to contact their Members of Congress <>  and ask for their support for these bills.

This phase-in approach has gained bipartisan support, but there is little time left for Congress to act to reform the rule.  As NAHB works toward permanent relief, the association will continue to provide its members with the tools they need <>  to comply with the new overtime requirements.  A webinar and FAQ document can be located on NAHB’s website.

Please contact Suzanne Beall in Government Affairs if you have any questions.  She can be reached at

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