Overreaching Proposed Federal Overtime Rule:
What You Need to Know & How You Can Help
If you take President Ronald Reagan’s words to heart, then the Obama administration’s new federal overtime proposal will likely hurt more than help Florida businesses. The federal Department of Labor’s proposed overtime rule will impact overtime pay for salaried “white collar” employees working more than 40 hours a week – about five million workers according to the federal government.
The current exemption for overtime pay is any salaried employee making at least $23,660 a year working in an executive, administrative or professional role. The proposed rule will require employers to pay salaried employees making less than $50,440 a year at least time-and-a-half for all hours worked over 40 a week. In addition, the minimum threshold is scheduled to go up each year so that it continues to reflect the 40th percentile of earners. If enacted, this rule will take effect in 2016.
Many employers, especially small businesses, won’t be able to absorb the increased labor and litigation cost, and are sending in their comments before the September 4 deadline. This is another example of federal regulations drowning job creators, and it’s why the Florida Chamber is fighting back and championing regulatory reform on the hill in Washington, D.C.