NFIB member Sky Fogal, owner of Skirmish Paintball in the Poconos, attended a hearing to voice opposition to a piece of legislation that seeks to increase eligibility for overtime pay.
If passed, the regulation would increase the number of entry and mid-level managers who would be required to get overtime pay by raising the salary threshold for exempt Pennsylvania employees from $23,660 to $47,476. The proposal is similar to one proposed at the national level by former President Barack Obama’s administration.
Gov. Tom Wolf has been a strong supporter of this legislation in hopes it will rejuvenate the declining middle class in the state. However, NFIB has strongly opposed of the potential regulation as it would “unquestionably harm small businesses and their employees.”
Fogal spoke on behalf of small business owners at a Sept. 5 legislative hearing where he explained the seasonal nature of his business and how his employees work long hours during the busy season and reduced hours during the offseason. He said by classifying them as salaried workers they get the advantage of a steady paycheck all year long regardless of how many hours they work, according to Pennsylvania Watchdog.
“Small business owners like myself work tirelessly to follow the rules, but state and federal regulations are different,” Fogal said. “So it’s like playing a football game with two separate rule books and two separate referees. Small businesses simply don’t have the resources to have a lawyer on staff, or even an HR person to help make sense of this quagmire. A multitude of studies have shown that a stable regulatory environment is best for business growth.”
Fogal said the new regulation would force him to reduce his employees’ hours, pay them less, and hire seasonal workers as needed which would most likely lead to all workers needing a second job to make up for the reduced wages and hours.