How the New Overtime Rule Hurts Workers

The Obama Administration has now released their final rule doubling the salary threshold for whom is eligible for overtime pay.

We all agree that you should get paid for the work you do, but the way the administration is seeking to address overtime pay is going to have a host of unintended consequences for the very workers they are hoping to help.

The problem stems from what has been a clear pattern from this administration since the beginning — a fundamental misunderstanding of how our economy works. As much research as we’ve done, as much time trying to figure out if its possible — money still doesn’t just grow on trees.

So what happens when the overtime threshold is not just changed, but doubled? A lot of folks will see their hours capped, some will see their salaries reduced, and unfortunately some folks will probably lose their job. Small businesses, non-profits, colleges and universities — these are not folks operating with a large margin of error. And what that means is one more suffocating regulation, which will cost thousands of dollars per year per employee, will lead to fewer jobs, higher tuition and less opportunity to move up.

When the federal government forces a change like this, it does not come along with the dollars to pay for it. This doesn’t happen in a vacuum — every rule and regulation is another piece in what this administration has turned into a high stakes game of dominos.

The Administration has refused to allow states the opportunity to check the data and methodology the Department of Labor used to build the rule. So, in the state of Florida for example, their Department of Economic Opportunity ran their own study, and found that their estimate for the state of Florida alone costs 80 percent of the Department of Labor’s estimate for the entire country.

I have introduced the Protecting Workplace Advancement and Opportunity Act to nullify the current rule and require a comprehensive economic analysis of how the rule will impact workers, small businesses and our economy as a whole. This isn’t typically how the administration has done business, so it’s no surprise that they are not agreeing to complete a full analysis.

Our economy has sputtered for 7 years in a row now, because of policies that, while they may be well-intentioned, are simply not well thought out. Instead of the federal government trying to create its own wage scale, lets work on initiatives that will actually create jobs.

My LEAP Act encourages apprenticeships to help folks earn while they learn. My Investing in Opportunity Act incentivizes long-term, private investment in distressed communities without creating a new government program. And my work on education seeks to provide a foundation to ensure that every child has access to a quality education.

These are real solutions, not big government mandates driven by bureaucrats. And that’s where we should be focusing our efforts.

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