The U.S. Department of Labor released new overtime rules last week, but some say these new regulations will actually stunt business growth and the middle class.
After the announcement last Wednesday, White House Spokesman Josh Earnest said these workers are entitled to overtime pay…
Earnest: “By definition these are 4 million of the hardest working Americans. These are individuals who are already working overtime. And the President believe that they should be paid fairly for their work.
But organizations like the National Federation of Independent Business opposes the increases, stating it could negatively impact approximately 44 percent of small businesses.
NFIB Alaska Director Denny DeWitt says, “This overtime rule is just one more Obama administration brick in an already heavy regulatory backpack weighing down small business job creation.”
The Department of Labor’s new rules state that anyone who earns less than $47,476 on salary per year is eligible for overtime pay for anything over 40 hours per week. Before the threshold eligible for salary overtime was $23,660.
Those who oppose the new rules think that employers might cap or cut hours, or possibly convert salaried workers back to hourly.