Business Groups Forecast Harm From Obama's New Overtime Regulation (Washington Times)

The National Association of Manufacturers called the rule “the latest in what has been a deluge of regulations from this administration that are fundamentally altering the manufacturing workforce and negatively impacting companies and business owners.”

“This regulation creates barriers to opportunity, severely limiting flexibility and dramatically increasing red tape, especially for small manufacturers who cannot afford the burdens of a 99 percent salary increase for management employees who are exempt from overtime pay,” said NAM Vice President Rosario Palmieri. “Even worse, the administration has also required there to be future automatic increases, which creates uncertainty in planning for future years.”

The Labor Department regulation will raise the salary threshold for receiving overtime from $23,660 to $47,476 a year, or from $455 to $913 a week. Currently, salaried employees who are paid more than $455 a week can be deemed “managers” even if they have little in the way of supervisory duties and therefore ineligible to be paid at higher overtime rates if they work more than 40 hours per week.

Mr. Palmieri said what the administration portrays as a pay raise for 4.2 million workers could limit options “for many who strive to be part of management.”

“Time and resources that could be spent on creating jobs and opportunity will now be used in efforts to comply with this rule,” he said. “If the goal is to fatigue manufacturers and create disincentives to opportunity, then mission accomplished.”

View Full Article