Tom Woods, Chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo., issued the following statement on the U.S. Department of Labor’s proposed overtime rule, which could affect at least 116,000 construction supervisors, in addition to multiple occupations in the construction and housing sectors:
“NAHB is concerned that changes to the current overtime standard will reduce job-advancement opportunities and the hours of full-time construction supervisors, leading to construction delays, increased costs and less affordable housing options for consumers. In addition to construction supervisors, the proposed rule could affect other occupations in the industry, including sales representatives, administrative staff and local trade association employees.
“With the Department of Labor acting to more than double this overtime threshold to over $50,000, NAHB and others in the business community argue that such a dramatic surge is unlikely to result in an increase in workers’ take-home pay. Rather, it would force business owners to structure their workforce to compensate by scaling back on pay and benefits, as well as cutting hours to avoid the overtime requirements and convert salaried employees to hourly workers who will see this as a demotion.
“The proposed overtime rule is a ‘one-size-fits-all’ standard. Given the potential broad impact of the proposed rule, an obvious issue concerns the fact that wage amounts vary greatly from location to location, as well as among business sectors. Construction wages are very regional, and what one construction supervisor makes in one part of the country is different than what one earns in another—sometimes wages varying significantly.”