The most significant change under the rule is a doubling of the standard salary threshold for exempt employees—from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). Many AGC contractors had already taken steps to implement this rule by reducing employee hours or notifying employees of salary increases, for example. Given the uncertain path ahead, those contractors may want to re-evaluate the overall impact of the changes made and either roll-back or keep those implementation efforts in place, considering both the impact on the company's bottom line as well as employee morale.
For more AGC information on this rule click here or contact Tamika Carter at cartert@agc.org or (703) 837-5382.