The new rule will extend overtime eligibility to many thousands of workers in the wireless infrastructure industry. However, it’s possible that the Associated Builders and Contractors Association and other trade groups might initiate a legal challenge to prevent it.
A new rule from the US Department of Labor unveiled on Tuesday will extend overtime eligibility to millions of salaried workers by raising the salary threshold in two phases. Starting July 1, the threshold will be set at $43,888 annually or $844 per week. It will increase to $58,656, or $1,128 per week, beginning January 1, 2025.
According to the department’s estimates, this adjustment will make an additional 4 million workers eligible for overtime by January 2025, transferring approximately $1.5 billion from employers to workers in its first year through overtime payments or salary adjustments to maintain exemption status.
Acting Labor Secretary Julie Su highlighted the intention behind the rule: “This rule reaffirms the principle that working over 40 hours a week should result in higher compensation.” She stated, “It’s unacceptable for lower-paid salaried employees to work longer hours without extra pay, similar to their hourly peers, yet miss out on time with their families.”
The current threshold, set by the Trump administration in 2019, is $35,568 annually, or $684 per week. The new rule also introduces a mechanism for updating the salary threshold every three years, starting from July 1, 2027.
Despite the intended benefits, business groups are anticipated to oppose them, reminiscent of their successful challenge against the Obama administration’s attempt to raise the threshold significantly.
ABC: The rule is expected to disrupt the entire construction industry
Although wireless infrastructure associations have not commented on the new rule, severe criticism emerged from Ben Brubeck, vice president of regulatory, labor, and state affairs at Associated Builders and Contractors (ABC). He expressed concerns about the rule’s impact on the construction industry, including potential restrictions on workplace flexibility and adverse effects on career advancement opportunities. He indicated that his group is considering a legal challenge.
“Virtually all of ABC’s members employ workers who qualify for exempt status, and phase II of the final rule will reclassify huge numbers of these employees as nonexempt,” said Brubeck.
“This will disrupt the entire construction industry, specifically harming small businesses, as the rule will greatly restrict employee workplace flexibility in setting schedules and hours, hurting career advancement opportunities. These issues will recur repeatedly because the DOL rule will automatically increase the salary level every three years beginning in 2027. Additionally, the rule’s significant increase in the salary level threshold fails to account for disparate income levels in different regions of the country.”
The rule reflects an ongoing debate about federal overtime regulations initiated by President Barack Obama in 2016, who proposed raising the salary threshold to $47,476 annually. However, as reported by Wireless Estimator, this was halted by a federal judge’s injunction following lawsuits from business groups and several states, and the Trump administration later adjusted the threshold to its current level.
The final rule that expands overtime protections is available here.
