A new rule being implemented by the federal government was condemned by the Lubbock Chamber of Commerce.
Chairwoman Beth Bridges expressed her disappointment on behalf of the Chamber Wednesday, after the Obama Administration announced details into the rule.
“What this means is employees who are currently exempt will have to be re-classified as non exempt and that will just increase a businesses cost of doing business,” she said. “So it’s disappointing that the Obama Administration has overreached what they can do and what they can dictate to businesses.”
The new policy will benefit approximately 4.2 million Americans, including about 370,000 Texans.
“When you’re working 60, 70 hours a week, you’re not getting compensated for it, we’re also losing the opportunity you’d have if you’re working 40 hours a week to improve yourself or to spend time with your kid,” said Vice President Joe Biden during a stop at Jeni’s Splendid Ice Cream headquarters in Columbus, OH to promote the new rule.
According to the Department of Labor, mandatory overtime pay is expanding to salaried workers who make less than about $47,476 dollars a year or about $913 a week.
Those figures are approximately doubled the current threshold.
Bridges criticized the rule, saying that it makes business more difficult for small business owners.
The rule takes effect in December, and “really will just increase the cost of doing business for all businesses,” Bridges said.
White House Press Secretary Josh Earnest responded to opponents of the action.
“This is actually not the creation of a new rule, this is a rule that has been on the books governing overtime pay for decades now, this is merely an update of an already existing rule, that will ensure that the hardest working Americans are paid fairly for their overtime. So the principle is quite simple, the impact is quite significant, we would anticipate that this executive action that would extend over.. would extend overtime protections to more than 4 million American workers,” he explained.
Bridges said the Chamber of Commerce has scheduled a seminar for small business owners on June 7, to help them understand upcoming changes.
Additional information about the overtime pay can be found by clicking here.
