Stephanie Salmon, AFS Washington Office; Jeff Hannapel & Christian Richter, The Policy Group, Washington, D.C.
WASHINGTON ALERT
Industry Groups and States File Suit Challenging New DOL Overtime Rule
THE NEW OVERTIME RULE, SET TO TAKE EFFECT ON DEC. 1, WOULD REQUIRE EMPLOYERS, INCLUDING METALCASTERS, TO PAY OVERTIME TO ANY SALARIED WORKER EARNING LESS THAN $47,500 A YEAR, DOUBLE THE CURRENT THRESHOLD OF $23,660.
A group of 21 states and over 55
business groups filed suit challenging the U.S. Department of Labor’s (DOL) new overtime exemption rule on Sep- tember 20, 2016, arguing the agency unconstitutionally overstepped its au- thority to establish a federal minimum salary level for white collar workers. Te rule, set to take effect on Dec.
1, would require employers, including metalcasters, to pay overtime to any sal- aried worker earning less than $47,500 a year, double the current threshold of $23,660. Future automatic increases to the salary threshold will occur every three years, beginning on Jan. 1, 2020. Te states challenging the lawsuit
include Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Ken-
ON THE HILL
House Approves AFS Endorsed Technical Education Reauthorization Bill
The U.S. House of Representatives approved AFS-supported bipartisan legislation on September 13, by a vote of 405-5. The bill, the Strengthening Career and Technical Education for the 21st Century Act (H.R. 5587), also known as Perkins Act, reauthorizes the primary federal legislative investment in Career Technical Education (CTE). Key provisions of interest for metalcasters include: integrating industry-recognized credentials; ex- panding support for dual- or concur- rent-enrollment programming, such as early college high schools that provide students with the opportunity to receive postsecondary credit while in high school; authorizing innovation grants to improve CTE; and, increase support for work-based learning ac- tivities through innovation grants and state leadership activities.
IRS Proposes Significant Changes to Estate and Gift Tax Rules
In August, the U.S. Treasury Depart- ment released a set of proposed regula- tions making changes to Section 2704 of the estate and gift tax valuation discounts. The proposal would impose significant new tax costs on family-owned busi- nesses, making it harder for family owned and operated businesses to transition to the next generation.
AFS is working with the Family Busi- ness Estate Tax Coalition (FBETC) and the National Association of Manufacturers (NAM) on this issue. AFS recently signed onto a coalition letter to the Dept. of Treasury, Secretary Jack Lew, urging the withdrawal of new estate tax regulations, which was sent the week of Sept. 26. In order to understand how the new proposed rule will impact small, family owned metalcasting facilities and suppli- ers, input was sought on the following: • How does your succession plan use valuation discounts to help pass on
the business? If your business has already survived one generation, were valuation discounts useful in that transfer?
• Background on your company— how long has your business been open, who founded it, how many employees do you have, where do you operate?
• How will the proposed rule affect your succession plan and the transfer of your business?
• If the rule change increases your estate tax liability, what will that do to your employees? Reduction in workforce, benefits, or wages? Slower future growth?
• Could this change potentially cause the liquidation of the busi- ness to pay estate or gift taxes? Forward your comments to ssalmon@
afsinc.org.
For additional information, contact Stephanie Salmon, AFS Washington Off ice, 202/842-4864,
ssalmon@afsinc.org.
October 2016 MODERN CASTING | 17 A group of 21 states are challenging the new overtime rule.
tucky, Louisiana, Maine, Michigan, Mis- sissippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin. Continuing legisla- tive efforts to defund, block or nullify the
rule in Congress are expected. For compliance information on the
DOL’s final rule updating the overtime regulations, go to:
www.dol.gov/whd/ overtime/final2016/.
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