More than 4 million U.S. workers will become eligible for overtime pay at the end of the year under new rules implemented by President Obama.
This was all done to prevent companies from overworking employees, some who continue to make the same amount of money whether they work 40 hours or 60..
But Republicans and business groups see this as a small business killer.
Under the new rules, the annual salary threshold for overtime pay will be doubled from $23,660 to $47,476.
That means if you work more than 40 hours a week, you will receive over time pay, or your employer may opt to keep you at 40 hours a week to avoid paying you more.
“For businesses, it’s going to raise the cost of doing business. Now there’s this administrative operational cost of tracking hours for a workforce that they weren’t having to track before,” Interim Dean of Hull College of Business Mark Thompson said.
Thompson says some businesses may just raise salaries above the nearly $48,000 threshold.
He says another option is to lower wage rates.
Despite the uncertainty, he does see some good in the changes too.
“There may be some workers where it provides a little more work/life balance. It could increase moral. So in those cases, that could be a positive,” Thompson said.
But Congressman Rick Allen doesn’t see any positives in this.
“The small business community is going to be severely affected by this. And we know that 70% of new jobs created in this country are created by the small business community,” Allen said.
The congressman says he’s had hearings about the new rules and is now co-sponsoring a bill to get rid of them.
“Frankly, these are unelected bureaucrats that are putting these rules out. The law starts in the United States Congress, so he puts the rule out and then we deal with it,” Allen said.
He says he believes some states will now file lawsuits against the federal government.K
“The way you increase wages is through economic growth,” Allen added.
Augusta University has 705 employees who make less than $47,476 a year.
The school doesn’t know how much these changes are going to cost them.
If you’d like to know how you may be affected, experts ask that you reach out to your employer for information.