In July the Department of Labor (DOL) proposed a minimum salary threshold for exempt employees at $970 per week or $50,440 annually. That’s a huge raise — 113% — from the current $455 per week or $23,660 per year.
PIA opposes the proposal and submitted comments to the department that includes the results of a member survey. Members worry about the potential negative impact on small businesses.
You can find the PIA comments and details of the suggested alternatives here.
Professional Insurance Agents wants:
• The DOL to reconsider the proposed minimum salary threshold of $50,440 and instead consider a more appropriate inflation adjusted amount around $40,000.
• The DOL allow non discretionary bonus and/or commission compensation to be considered in meeting the minimum salary threshold as long as such compensation is received at least on a quarterly basis.
• The DOL not index salary levels to any inflationary measure; however, if the DOL indexes salary levels to an inflationary measure, have the adjustment occur no more frequently than every five years.
• The DOL leave the duties test as it currently is or undergo another rule making in which draft language is put forward in accordance with the APA.
PIA also partnered with the Partnership to Protect Workplace Opportunity (PPWO). It is 100 other groups — many of whom represent small business around the nation — including the American Insurance Association (AIA) and the National Association of Insurance and Financial Advisors (NAIFA).
The PPWO comments can be found here.
One of the leaders of the movement to change the rules is the National Association of Insurance and Financial Advisors or NAIFA. Juli McNeely is NAIFA’s president and she recently testified before the House subcommittees on Oversight and Investigations and Capital Markets and Government Sponsored Enterprises. In her testimony, McNeely said the new rules are ill-conceived and will have negative consequences for small business and — in particular — on retirement savers.
“Simply put, American investors need more personalized assistance and more options with respect to retirement planning and saving, not less. Unfortunately, the Department’s proposed rule, along with its proposed amendments to existing prohibited transaction exemptions (PTEs), threatens to be counterproductive with respect to this country’s retirement crisis by making it both more expensive and harder, not easier, to provide investors — particularly those who need it most — with the services and products that could help them live independently during their retirement,” she said.
Source links: PIA National and Employee Benefit News