08/07/2015

From the executive director: Let feds know your opinion about changes in overtime rules

By Dennis Hetzel

Two weeks ago, I wrote about the change the Obama Administration is proposing in the eligibility requirements for overtime and the severe impact this could have on many of our members.

Since then, there have been several developments I want to share on what ONA is doing and what you can do.

To briefly recap, the plan is to dramatically hike the minimum amount an employee can make in order to be exempt from overtime requirements, starting sometime in 2016. The amount would move from $23,600 per year ($465 per week) to $50,440 ($984 per week). While we can agree the amount is due for an update, the proposed figure is too high.

I urge you to go to the Department of Labor’s website and provide feedback on how these rules will impact you.

It’s easy. I recently did it on behalf of the ONA. Click here to go to a “feedback form” at regulations.gov. Federal officials say this is the primary method by which they will be assessing whether to implement the rules as proposed or make changes. The deadline for comments is Sept. 4.

At ONA, we are planning a free, fall webinar with a legal expert who can talk about the impact, recommend best practices and offer a refresher on the Ohio laws. Our partners who run the nationwide Online Media Campus for newspapers also will be scheduling a webinar with an expert sometime this fall. Please watch for announcements.

At our ONA Convention in February, assuming this proposal still is being implemented, which seems likely, our Convention Committee wants to offer a session with an expert or experts.

So far, the smallest newspapers still would get relief. I’m told by our national organizations that, as of yet, there is no proposal to change the current federal rules that exempt local newspapers with a circulation of less than 4,000 from overtime and minimum wage requirements. According to Tonda Rush of the National Newspaper Association, however, it is important to note that this only applies to individual newspapers. In other words, the government would aggregate the circulation of small newspapers that are part of a group.

Attorney Greg Mersol of Baker and Hostetler in Cleveland, an employment law expert, says nothing in Ohio law would supersede the overtime exclusion for small newspapers, but Ohio law related to exclusion from minimum wage requirements is in a murky state with court decisions pending.  Mersol says the federal overtime exclusion requires that most of the paper's circulation be in its home county or contiguous ones.

Meanwhile, although this is not part of the proposal, we continue to hear that the federal government remains aggressive in efforts to find that independent contractors are employees. It’s always a good idea to tighten up your independent contractor procedures to ensure they conform to the law. If you have concerns in that area, let us know.

Here is what we wrote to the Department of Labor, which is similar to what we have communicated to the Ohio delegation in Congress:

The entire newspaper/local news media industry and many local businesses would be severely impacted by these rule changes. I am writing on behalf of the Board of Trustees of the Ohio Newspaper Association, which represents more than 300 daily and weekly newspapers and local news websites in Ohio.

While the intent may be laudable, more-than doubling the threshold for exempt status to $50,440 annually will present a significant burden. 

There are hundreds of employees with legitimate supervisory authority making less than $50,400 in all departments of many Ohio newspapers, up to and including editors, general managers and ad directors in some cases. This is particularly true in smaller communities. That speaks first to the lower cost of living in these communities. At a minimum, we would strenuously argue that the $50,440 figure is much too high a threshold.

It also is no secret that newspapers face economic challenges. Our industry is working feverishly to develop sustaining revenue models so that we can continue to provide the local journalism that Ohio citizens want and need across multiple platforms. The impact of this proposed change by the Obama Administration will be direct and harmful to our members. The capacity to raise pay, authorize more overtime and otherwise absorb increased expense simply isn’t there in many cases. Readers will feel the impact of inevitable cutbacks to news coverage, delivery service and in other areas.

This also will ripple out in harmful ways to many of our advertisers, local businesses and entrepreneurs themselves in many cases who will face the difficult choice of increasing expense, cutting staff or doing both. No matter what, their available resources to grow their businesses through advertising and marketing will be diminished.

Again, please consider adding your voice. Your individual statements of impact can be powerful additions.

Additional Information

• Overtime proposal could draw litigation (The Columbus Dispatch)