Millions of salaried workers will soon qualify for overtime pay under a final rule released by the US Department of Labor on Tuesday.
The new rule raises the salary threshold under which salaried employees are eligible for overtime in two stages. The threshold will increase to the equivalent of an annual salary of $43,888, or $844 a week, starting July 1, and then to $58,656, or $1,128 a week, on January 1, 2025.
"I suspect that such substantial increases may be a particular burden for many smaller businesses, forcing some to choose between cutting jobs and raising prices," said Ted Hollis, a partner at Quarles & Brady, a law firm. "Some businesses that cannot do either may be forced to close, resulting in unintended but predictable side effects of this government action."
The rule will "exponentially increase" operating costs for small restaurant owners who are "trying desperately" to keep menu prices steady, Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, said in a statement.
"And because DOL created a one-size-fits all rule based on national income data, rather than regional data, this change is going to disproportionately impact restaurant owners in the South and Midwest," he said.
No comments:
Post a Comment