CEO DATELINE - Proposed overtime rules receive thumbs down from business groups
CEO DATELINE - Proposed overtime rules receive thumbs down from business groups
- July 1, 2015 |
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Walt Williams
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President Barack Obama's proposal to expand overtime pay to some five million workers drew sharp rebukes from several associations Tuesday, with the groups saying the regulatory changes being sought would harm the very people they were meant to help.
"If allowed to stand, the one-size-fits-all proposal issued today will harm chain restaurant managers' career advancement, eliminate key management positions and have a negative impact on customer service and workplace morale," said Rob Green, executive director of the National Council of Chain Restaurants, an affiliate of the National Retail Federation. "We need policy that encourages workplace advancement and this is a step in the wrong direction."
Obama's proposal would extend overtime pay to salaried workers making less than $50,440 a year. Currently workers making more than $23,660 are not eligible for overtime. In a statement, the White House blamed "industry lobbyists" for slowly eroding the 40-hour work week, "leaving millions of Americans working long hours, and taking them away from their families without the overtime pay that they have earned." http://1.usa.gov/1f0Hx2n
Groups like the National Grocers Association took exception to the characterization.
"NGA members are proud to be an employer of choice in their communities, offering stable, reliable jobs and opportunities for career advancement," the group said. "Unfortunately, the proposed rule that was announced today creates new barriers, potentially forcing employers to reclassify thousands of salaried workers back to hourly non-management positions, likely also impacting employee benefits and flexibility."
The International Franchise Association argued that millions of salaried workers would be forced to become hourly employees and, as a result, lose benefits such as workplace flexibility and long term career advancement.
"This is just the latest example of the Obama Administration unnecessarily meddling in the everyday management of small businesses," IFA Executive Vice President of Government Relations & Public Policy Robert Cresanti said.
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