THE BOARD OF Directors of the Carteret County Chamber of Commerce is urging Congress to pass S. 2707 and HR 4773 – the Protecting Workplace Advancement and Opportunity Act – to defund, block and otherwise nullify the Obama administration’s executive fiat to change America’s overtime rule.
The Congressional bills would effectively prevent the US Dept. of Labor (DOL) from implementing its new overtime regulation, which dramatically increases the salary threshold for exempt employee status, from $23,660 to $47,476.
The rule change means an estimated 4.2 million workers will lose salaried employment status and be “reclassified” by the federal government as hourly workers.
As it now stands, the effective date for the new overtime rule is Dec. 1, and employers will be required to pay overtime to those employees who work more than 40 hours per week.
“Industries and organizations all across the country – particularly small businesses and not-for-profit agencies and organizations – will face drastic increases in labor costs as a result of the Obama administration’s edict,” noted Chamber Board Chair Bucky Oliver.
“These added costs to employers will force reductions in services offered to customers, clients and members … while ushering in massive job cuts,” he said.
“We encourage members of Congress to do everything in their power to nullify this rule and defund any future efforts to implement the final rule.
The chamber commends US Sen. Thom Tillis of North Carolina for being a co-sponsor of the Senate bill. He is correct in his analysis: “I do not believe that making more employees eligible for overtime pay will lead to more income, but rather fewer jobs.”
Senator Tillis also notes: “Most employers aren’t sitting around on a pile of cash just waiting to be told by the federal government to hand it over to their employees. Mandates for higher pay will require these already struggling small businesses to lay off or reduce the hours for workers they can no longer afford.”
“That, indeed, is the crux of the matter,” Oliver stated.
The chamber also applauds US Rep. Walter Jones, who represents Carteret County, for agreeing to co-sponsor the House bill.
On May 10, the chamber board unanimously approved a Resolution of Opposition to Changing the Federal Overtime Rule. (All 21 voting members of the board voted in favor of the Resolution.) Access the Resolution at www.nccoastchamber.com.
Mike Wagoner, President
Carteret County Chamber of Commerce