The Cedar Park Chamber Of Commerce has announced it will join the Round Rock Chamber of Commerce among other Texas and national business organizations in opposing the U.S. Department of Labor overtime rule. Emerging details indicate that the Texas governor is also among those opposing the new law.
The new rule proposes raising the threshold of salaried workers qualifying for overtime pay from $23,660 to $47,476. The move is designed to benefit over 4 million workers all over the U.S. The new rule is due to be effected as from Dec 1, giving employers time to prepare for the changes.
Reports indicate that the rule has been in the making for two years. In 2014, President Obama directed the Secretary of Labor to make appropriate changes to the regulations. The changes were meant to simplify and modernize the rules, making them easier to understand and apply.
The National Association of Manufacturers, the U.S. Chamber of Commerce, and 21 state governments are among the parties opposing the new rule. These interested stakeholders argue that the law does not take business interests into consideration. The move will see workers either getting a new salary threshold or gaining new overtime protections. Reduced profits for employers are one of the likely results of the move, which could result in employee layoffs.
According to the Cedar Park Chamber Of Commerce, the changes double the salary threshold of targeted employees overnight. The move will have adverse effects on industries, both at the management as well as at the workers’ level. The changes will limit business flexibility and thus might potentially hurt employee morale.
Business owners term the move as a punishment by the government. Short term effects of the rule include the doubling of the salary thresholds. In the long-term, the salary thresholds will have automatic updates every three years. These effects will prove unsustainable for businesses over time.