Letter to Martin J. Walsh, United State Labor Secretary - Mullin Advocates for Small Business Owners Amid Upcoming Revisions to the Fair Labor Standards Act


Dear Secretary Walsh,

We write today to request that the Department of Labor postpone proposed rulemaking aimed at revising the regulations defining "white collar" exemptions to the Fair Labor Standard Act's overtime pay requirements. Less than three years ago the Department of Labor finalized regulations increasing the minimum salary, so there is no compelling reason for an immediate adjustment.

The U.S. economy is currently dealing with the lingering economic consequences of the COVID-19 pandemic, historic levels of inflation, the tightest labor market in decades, and post-pandemic changes to the workforce that are unfolding and uncertain in scope. All of these magnify the potential that nationwide, sweeping changes to the federal regulations governing pay will negatively impact and cause disruptions to labor markets and the economy generally.

Staffing and cost challenges associated with running anything from a business to a school have been exacerbated by workforce shortages, supply chain disruptions, and inflation at a 40-year high. Any change to overtime pay regulations will further complicate this situation as employers will also need to adjust job structures and staffing to the new regulatory requirements. Industries across the spectrum have been impacted by the pandemic, but some have been hit harder than others. These industries are still struggling to recover from the pandemic's economic toll and are not well-positioned to absorb costs that are associated with changes to the overtime pay regulations, such as compliance and job restructuring.

We urge you to shelve plans to make any changes to overtime regulations at this time.