U.S. Rep. Darrin LaHood (R-Ill.) held a roundtable discussion in Peoria, Ill., on April 22, 2016, to discuss the impact a proposed overtime rule could have on businesses.
Nearly 40 people representing businesses, health care and nonprofit organizations throughout the area attended the event, including Ray Lello, owner of Midwest Construction Rentals in Bloomington, Ill.
The event gave attendees the opportunity to voice their concerns over the Department of Labor’s (DOL) proposed changes to the Fair Labor Standard Act with their representative.
The “white-collar” exemption, updated in 2004, originally was aimed at executives, administrators and professionals, and provides that salaried workers who earn more than $455 per week or $23,660 a year may be exempt from being paid time-and-a-half for working more than 40 hours a week. Under the proposed changes the salary level would more than double to $970 per week or $50,440 per year.
The DOL has sent its new rules to the White House’s Office of Management and Budget for final approval. While the proposed change is to increase the salary level to $50,440 per year, it’s unclear what the final rule contains.
“The DOL proposal would cause damage to my business, my employees and the city, state and national economies because it would dramatically increase federal overtime pay requirements by 113 percent immediately, which is unworkable for my business and most others,” said Lello. “The proposal not only has an estimated cost of $8.4 billion per year, but will reduce opportunity and flexibility for millions of employees, particularly those just starting their careers. Employees who are reclassified from exempt to nonexempt status may no longer be able to participate in workplace flexibility arrangements and programs.”
H.R 4773, or the Protecting Workplace Advancement and Opportunity Act, was introduced by Republicans in the U.S. House of Representatives and U.S. Senate last month.
The legislation wouldn’t ban the DOL from creating an overtime rule, but it would restrict their ability to do so.
If passed, the DOL would be required to consider the economic impact the rule would have on the business community. It will block the agency from “finalizing a proposal that will limit opportunities for employees and place significant burdens on job creators.” The legislation also would prohibit automatic annual increases that are intended to rise with inflation, according to The Hill.
Rep. LaHood is a co-sponsor of the Protecting Workplace Advancement and Opportunity Act and was available to take people’s questions about the bill during the roundtable.
“As a small business owner, I strongly support passage of H.R. 4473,” said Lello. “I want to thank Congressman LaHood for being a co-sponsor of this legislation.”
