‘Stare oF Micttioas GRETCHEN WHITER OFFICE OF THE GOVERNOR, ARUN aLoHRIST May 17,2019 Director Melisa Smith Division of Regulations, Levishtion, and Interpretation, Wage and Four Division US. Deparment of Laber, Roc $3502, 200 Constttion Avenue, NW Washington, DC 20210 IRE: Notice of Proposed Rulemaking Defining and Delimiting the Exemptions for Executive, ‘Administrative, Professional, Outside Sales and Computer Employees; RIN 1238-420 ear Director Smith ‘As Governor ofthe State of Mishigan, I write to oppose the United States Department of Labor's ‘proposed revision tothe overtine rule Because itis a to weak to provide Michigan's workers withthe ‘overtime pay protections tht they need and deserve, ‘The proposed rule would strip guaranteed overtime pay avay from slared workers earning more than $35,308 a year, which was guaranteed under the far stronger Obama era protection fr workers earning up to $17,476 by 2016, and would have been automatically updated ever three years thereafter ~ for example itis projected tobe $55,068 in 2023, {In Michigan, approximately 192,000 working people would lose overtime protections under the department's weak proposal. Ove state i already fectingthe adverse effets fom the decison to abandon the previous overtime rule altogether. As a result, Michigan workers have lost more than $86 milion in ‘overtime pay — a pay cut thats hurting ou state's working families and our economy and this new proposal more ofthe same. {firmly belive thatthe weaker proposal put forth bythe administration would hue efforts to protect ‘Michigan's middle-class workers an sil to ensure that workers who must work lon hours away from their flies are pai aly for thee ime and dedication. ‘The new overtime proposal misses the mark in three crucial areas by not providing: (1) adequate salary protections; 2) inteased duties est protections; or (3) guaranteed indexing peotetons. Fest, the proposal substantially cuts the salary threshold for workers to receive overtime pay by nearly $21,000, At ime when many workers ae sil ving paycheck to paycheck, the proposed rule provides {the least protection to workersn love wage industries who need these protections the most. Te salary threshold shouldbe eased to a level more comparable to the previous 2016 proposal, which would goa Jong way towards remedying tis concer, os‘Second, the proposal ils ose proper duties test for workers to receive overtime pay. The proposed rule teas workers who have Inited professional or managerial duties ina similar fashion to executives, sdministators and professionals, which leads to workers being inappropriately classified as exempt and "underpaid. Strengthening the cites test would promote the proper classification of workers and guarantee overtime pay to those who meet this eters, Lastly, the propose! would notbe indexed to inress in future years to keep pace with ising wages and living costs, and instead woulé remain frozen at just $35,308. Many workers ae struggling to make ends rmaet a5 costs havo risen dramatically, But paychecks have remained ragnant. The department rhould propose a substantive method ‘or updating the salary level regularly by indexing the overtime pay protections fo ination. “The propose rule departs from decades of historical precedent and undereuts the purposes ofthe Fair Labor Standards Act's overtime provisions. The department's overtime proposal simply does act do «enough to restore overtime pay for workers in Michigan or establish the typeof strong national standard ‘thatthe department's overtimerules st in decades past. For these reasons, I strongly oppose any attempt by this administration to gut overtime protections oF reduce the paychecks af workig people in Michigan | respectfilly urge the department to reconsider its proposal and subsite i fora more adequate salary level comparable tothe Obamé era propesal or in the alternative, strengthen the duties test and include the adition ofa clear proposal for indexing. Sincerely “Sate me Governor of Michigan