Jax Chamber opposes employee overtime rule change by Obama administration

The Jax Chamber opposes a move by the Obama administration to raise the threshold for employees to qualify for overtime pay because of the negative affect it will have on small businesses.

Matt Galnor, director of communication for Jax Chamber, says the group sent a letter to the Obama administration opposing the proposal on behalf of its members last spring.

“Because of labor costs, you’re going to have to reevaluate duties,” Galnor told WOKV. “There will be higher labor costs for small businesses.”

The new rule raises the threshold for employees be denied overtime pay from $23,660 to nearly $47,500.

While many small business owners are upset over the announcement, which most certainly raises labor costs for employers, the White House maintains this is not a new rule.

“This is a rule that has been on the books, governing overtime pay for decades now,” White House spokesman Josh Earnest said. “This is merely an update to an existing rule.”

The update comes in the mindset that overtime protects have faltered since the being brought on in the 1930s, and requiring employers pay time-and-a-half for work outside of 40 hours in a given work week.

Galnor says the transitioning of employees from salary to hourly will cause problems for some businesses.

“I think you’re going to see small businesses reconsider the number of employees they have and how their businesses are structured,” Galnor said.

Employers have until December to comply with the rule “update,” as the White House would describe.