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legislation

Overtime Reform and Enhancement Act

What is the Overtime Reform and Enhancement Act (OREA)?

On May 18, 2016, the U.S. Department of Labor (DOL) issued a final regulation updating overtime rules for white-collar salaried employees for the first time since 2004. Using the 40th percentile of weekly earnings for full-time salaried workers in the lowest-wage Census region (currently the South), the rule raised the salary threshold for employees who are exempt from overtime pay from $23,660 ($455 per week) to $47,476 ($913 per week) effective December 1, 2016. Any salaried employee meeting the DOL’s criteria making less than $47,476 a year and working more than 40 hours a week will be entitled to overtime pay.

The current salary threshold of $23,660 is woefully inadequate and an update to the overtime rules for white-collar salaried employees has been long overdue. It is indeed time to strengthen overtime pay protections for America’s workers. The Overtime Reform and Enhancement Act (OREA) will update the overtime rules while allowing universities, non-profits, and businesses the necessary time to be able to plan and comply with the new rule.

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What does OREA do?

Using the administration’s effective date of December 1, 2016, the Overtime Reform and Enhancement Act will immediately increase the threshold more than 50 percent from $23,660 ($455 per week) to $35,984 ($692 per week). This increase represents the 20th percentile of weekly earnings for full-time salaried workers nationwide. After the initial increase in 2016, the bill will initiate a reasonable three-year phase-in until the DOL’s new salary threshold of $47,476 ($913 per week) is met.

The annual increases under the bill are:

  • December 1, 2016 -- $35,984 ($692 per week)
  • December 1, 2017 -- $39,780 ($765 per week)
  • December 1, 2018 -- $43,628 ($839 per week)
  • December 1, 2019 -- $47,476 ($913 per week)
The bill eliminates the automatic three-year increase to the salary threshold established under the new rule. The bill recognizes that future administrations can and should update the overtime rules, as they are required to under the Fair Labor Standards Act, but limits the ability of the DOL to update the rules on autopilot. This will allow stakeholders to comment on proposed changes and require the DOL to ensure the rules are working as intended.

Who supports OREA?

Agricultural Retailers Association
Alabama Nursery & Landscape Association
American Bankers Association
American Beverage Licensees
American Hotel & Lodging Association
American Institute of CPAs
American Society of Association Executives
American Society of Health-System Pharmacists
American Supply Association
AmericanHort (American Nursery & Landscape Association and The Association of Horticultural Professionals)
Appraisal Institute
Arizona Nursery Association
Associated Oregon Industries
The Associated General Contractors of America
Association Connecting Electronics Industries (IPC)
Association of Chief Human Resource Officers
Association Management Companies Institute
Association of the Nonwoven Fabrics Industry
Auto Care Association
California Association of Nurseries and Garden Centers
Carolinas AGC
Club Managers Association of America
Coalition of Franchisee Associations
College and University Professional Association for Human Resources
Colorado Nursery & Greenhouse Association
Credit Union National Association
Custom Management Group
Dolphin Research Center
Florida Nursery, Growers & Landscape Association
Georgia Green Industry Association

Golf Course Superintendents Association of America
Healthcare Hospitality Network, Inc.
Heating, Air-Conditioning & Refrigeration Distributors
Idaho Nursery and Landscape Association
Illinois Green Industry Association
Illinois Sign Association
Independent Bankers Association of Texas
Independent Insurance Agents & Brokers of America, Inc.
Independent Electrical Contractors
Indiana Nursery and Landscape Association
International Franchise Association
International Warehouse Logistics Association
International Public Management Association for Human Resources
Irrigation Association
Kentucky Nursery and Landscape Association
Maine Landscape and Nursery Association
Maine Arborist Association
Maryland Association of CPAs
Maryland Nursery, Landscape, and Greenhouse Association
Massachusetts Nursery and Landscape Association, Inc.
Michigan Nursery and Landscape Association
Michigan Society of Association Executives
Minnesota Nursery and Landscape Association
Montana Nursery and Landscape Association
National Air Transportation Association
National Apartment Association
National Association of Broadcasters
National Association of Credit Management - Gulf States
National Association of Development Organizations

National Association of Electric Distributors
National Association of Federal Credit Unions
National Association of Home Builders
National Association for the Self-Employed
National Association of Wholesaler-Distributors
National Board for Certified Counselors 
National Christmas Tree Association
National Club Association
National Federation of Independent Business
National Golf Course Owners Association
National Grocers Association
National League of Cities
National Lumber & Building Material Dealers Association 
National Multifamily Housing Council
National Newspaper Association
National Pest Management Association
National Restaurant Association
National Retail Federation
National Roofing Contractors Association
National School Boards Association
Newspaper Association of America
North Carolina Nursery and Landscape Association
North Dakota Nursery and Greenhouse Association
Northwest Credit Union Association
Northwest Food Processor Association
The Ohio Society of CPAs
Ohio Nursery and Landscape Association
Oregon Association of Nurseries
Oregon Bankers Association
Oregon Home Builders Association
Oregon Farm Bureau
Oregon Restaurant & Lodging Association
Partnership to Protect Workplace Opportunity
Pennsylvania Landscape and Nursery Association
Print and Marketing Solutions Group
Professional Golfers Association of America
Professional Insurance Agents
Retail Industry Leaders Association
Rhode Island Nursery and Landscape Association
Society for Human Resource Management
South Carolina Nursery and Landscape Association
Texas Nursery and Landscape Association
U.S. Chamber of Commerce
Virginia Christmas Tree Growers Association
Virginia Nursery and Landscape Association
West Virginia Nursery and Landscape Association
Wisconsin Association of Textile Services
Wisconsin Fabricare Institute
Wisconsin Green Industry Federation
Wisconsin Nursery and Landscape Association
WorldatWork
Worldwide Cleaning Industry Association

Editorials:
The Hill: Progressive Policy Institute
Alton Telegraph Herald Editorial Board
Nevada Appeal Editorial Board
The Hill: U.S. Chamber of Commerce


Read what people are saying nationally about OREA.
Read what Oregonians are saying about OREA.