Jeff McDonald//March 17, 2014//
President Obama‘s directive to expand eligibility for overtime pay is drawing concerns from the national Associated Builders and Contractors, a trade association representing 22,000 nonunion members.
The president last week directed the Labor Department to devise new rules for salaried employees who make more than $455 a week, but are ineligible for overtime because they are designated as management.
ABC’s Geoff Burr, vice president of government affairs, said the new rules would add burdens on small businesses, including those in the construction industry.
“(This) presidential directive will potentially affect all employers covered by the Fair Labor Standards Act, including the vast majority of construction contractors, subcontractors and suppliers,” Burr said in a statement. “ABC will explore all avenues to ensure that any proposed rule changes do not cause harm to merit shop contractors.”
Advocates of new overtime regulations say they could benefit millions of workers; critics say they could lead companies to eliminate jobs.
Obama’s memorandum does not specify what the rules or salary thresholds should be, leaving the rule-making to the Labor Department. Changes are not expected until this fall.
Oregon state Rep. Mark Johnson, R-Hood River, also expressed concerns about the potential changes, particularly in an election year.
“A lot of this is just political posturing,” he said. “Instead of having a real effect for employees, it will have a boomerang effect, taking employees off the salary track and putting them on hourly. A lot of times, you just have to work extra time to get the job done.”
Johnson also noted the potential impact on management.
“It is hard to see how it will help entrepreneurship,” he said. “Management will end up reacting to it, and it will end up creating hardships for employees who appreciate being in a salaried position.”