Statement by ACE President Ted Mitchell on New Federal Overtime Salary Threshold Rule

"Colleges and universities are among the largest employers in many communities, providing stable jobs and good benefits to nearly 4 million workers nationwide. The vast majority of our institutions are nonprofits and public entities unable to absorb sudden and massive increases in labor costs, such as the one contained in the Department of Labor's (DOL) final rule. The rule released today would increase the overtime threshold by nearly 65 percent when it is completely phased in on Jan. 1, 2025. Ultimately, students will be harmed if institutions are forced to cut services, reduce financial aid, reduce staffing, and raise tuition to address the rapid growth in costs this rule would produce.

While this rule will undoubtedly be challenged in court, as previous efforts were, we are disappointed that DOL failed to fully address the concerns raised by the entire higher education community. We will work with all stakeholders to help our institutions understand the costs and administrative complexities of implementing these changes, even as we continue to press for improvements to the new rule."