Employers Push For Pull-Back of New Overtime Regs

(Image courtesy of the U.S. Department of Labor) President Obama signed the regulations into law in May.

A group of nonprofit and small business executives is raising concerns about the new federal overtime regulations that are set to take effect December 1. The rules raise salary requirements for an employee to be considered overtime-exempt. The leaders are supporters of the national Partnership to Protect Workplace Opportunity organization, which says the provisions will have a "devastating effect" on Indiana.

During a conference call Thursday morning in Indianapolis, National Federation of Independent Business Indiana State Director Barbara Quandt Underwood said something needs to be done to stop implementation of the law. "Ultimately, you’re going to see fewer salaried managerial positions that would signal to employees that there’s little opportunity for growth at the company. The ability to work from home, the flexible hours, those things are going to go out the window." Quandt Underwood says she supports anything that would "slow down this ugly freight train," which includes counter legislation that would phase-in the overtime provisions over multiple years.

Quandt Underwood was joined by Arc of Indiana Executive Director Kim Dodson, Central Indiana Community Foundation Director of Human Resources Janie Andes and Hirons and Co. Senior Vice President Mike Murphy, who say they aren’t arguing against raising wages, they disagree with the timeline of implementation. "If they don’t phase it in and ratchet it up at a pace that’s doable," said Andes, "you can’t just double it overnight and expect these little, tiny businesses and small, grassroots nonprofits to absorb that kind of cost."

The new regulations were signed into law in May. You can connect to additional details by clicking here.