SIFMA Recommends Modifications to DOL-Proposed Rules Regarding Exemption from Minimum Wage and Overtime Pay

SIFMA expressed general support for the DOL's proposed rules regarding the determination of exemptions for executive, administrative, professional and outside sales and computer employees. SIFMA made several recommendations relating to implementation of the proposed rules.

Specifically, SIFMA suggested that:

• the DOL should allow incentive and supplemental compensation to count toward the base salary level required for exemption status;
• increases to salary levels should take place no more frequently than every five years on a calendar-year basis;
• methodology used to determine increased salary levels should be consistent with past DOL practices;
• the highly compensated test should remain at $100,000 and include a more simplified duties test; and
• the duties test for the white collar exemptions should not be revised, and if the DOL determines it appropriate to do so, the issue should be proposed to the public for comment.

In addition, SIFMA suggested that: (i) implementation costs will be significantly higher than estimated in the DOL's proposed rule, (ii) increasing the salary level will affect employee status, benefits and opportunities, and (iii) the DOL should give employers sufficient time to review the final rule before its effective date.