Proposed Changes to the Federal Overtime Rule
The deadline for the proposed plan to change the existing federal overtime rule is September 4th.
The existing overtime rule states that workers are entitled to overtime compensation if they make up to $23,660 annually or $455 a week. The administration is proposing to more than double this entitlement threshold allowing workers who make up to $50,440 annually or $970 a week to qualify for overtime compensation. Unfortunately, simply increasing the wage index without developing both long-term, sustainable economic growth and higher worker productivity are grounds for economic hardship. The ripple effect this would trigger on our economy would do more harm than good, and it is important to analyze the impact it will have before moving forward.
For more information on this important topic, we have attached additional resources. The articles that follow were published by the U.S. Chamber of Commerce and the Society of Human Resource Management describing the potential impact of the proposed changes.
Overtime Rule Change Bad for Business?
Contingency Planning Urged for Proposed Overtime Rule
Testimony of Tammy McCutchen before the House Subcommittee on Workforce Protections on examining the Costs and Consequences of the Administration’s Overtime Proposal
Please keep your eyes open for upcoming information on how to contact federal leaders on this issue before the deadline on September 4, 2015.