How New Overtime Regs Affect In-Company PAC Solicitations

Federal law governs who in a company can be solicited for a PAC contribution, and allows employees in a so-called “restricted class” of employees – those with policy making, managerial, professional or supervisory responsibilities – to be solicited at any time. A post from Aiken Gump explains that even though Fair Labor Standards Act criteria are not directly used to define who is in this class, the recently revised overtime rules from the Department of Labor may reduce the field of employees that can be solicited. “In light of the new DOL rule, corporations should review their ‘restricted class’ to ensure that they are complying with federal campaign finance laws, keeping in mind that employees must be paid on a salaried basis and exercise certain responsibilities to be solicited for the corporate PAC.”