LABOR COSTS TO INCREASE THANKS TO OVERTIME RULE
HARTFORD (May 18, 2016) — The National Federation of Independent Business (NFIB) today warned that the Department of Labor’s new overtime rule, released late Tuesday evening, will mean higher costs for small employers and that some salaried workers might find themselves sliding back into hourly jobs.
“State lawmakers have created enough problems for the small business community in Connecticut, the last thing we need are bureaucrats in Washington interfering with the day to day operation of our businesses,” according to Andrew Markowski, NFIB Connecticut state director. “Instead of helping workers, not only will this rule interfere with the job market and cause entry-level management positions to become extinct, but the employees impacted will have to fall back into hourly jobs.”
Previously, workers earning $23,660 annually were eligible for time-and-a-half for every hour they worked beyond 40 hours. The DOL has doubled that threshold to $47,476. According to the Obama administration, 5 million more workers must now be paid overtime as a result.
“Increased labor costs thanks to this mandate will have to be offset somewhere, and at this point our members have nothing left to give. They simply cannot absorb this hit without making some very difficult decisions. Employers here are already struggling thanks to a tremendous amount of economic uncertainty caused by our state legislators and ultimately this ruling will force the decision between increasing prices for consumers or negatively impacting the very same workers whom the Department of Labor thinks they are helping,” concluded Markowski.