Frankfort, Ky. āĀ The Kentucky Chamber filed formal comments with the Federal Department of Labor opposing proposed changes to the proposed overtime rules.Ā Echoing the concerns expressed by chamber members in theĀ letter, the organizationĀ noted the proposal would do more to hurt workers than it would help.
The U.S. Department of Laborās Wage and Hour Division announced the proposed rule to change the overtime rules in June. Currently, salaried workers are eligible for overtime compensation if they work over 40 hours per week and make $455 per week or less ($23,660 annually). The proposal would more than double this rate to $970 per week ($50,440 annually).
Proponents argue this change will give more Americans pay increases through overtime pay; however, the chamber predicts the result would likely beĀ slashed hours, fewer benefits and less flexibility. (For more details on the proposed policy,Ā download theĀ Kentucky Chamber issue brief.)
According to Chamber senior vice president Bryan Sunderland, Ā the “proposal will make it more difficult for employers to promote and advance employees who show promise to management positions. It is actually very likely that the proposal will exacerbate the wage gap this proposal seeks to address by forcing employers to limit hours and opportunities.ā
In itsĀ formal commentsĀ to the Department of Labor, the chamber noted that the departmentās own estimates indicated that roughly 75 percent of employees would not see increased pay, but the proposal would cost Kentucky employers $19 million to comply with the proposal.
The new policy may have far reaching impacts on employer flexibility, such as working from home, working remotely, and may impact policies regarding mobile devices as it will be difficult for employers to properly track time. This change will impact local chambers, non-profit and charitable groups as well as manufacturers, retailers, restaurants, professional services and other traditional businesses.
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