IFA Says New Overtime Regulation "Unnecessarily Meddling"

The International Franchise Association (IFA) is condemning a proposed overtime regulation rule from the Department of Labor that it says would dramatically increase the threshold for overtime pay and ultimately force thousands of employers to shift the pay status of their workers from salaried to hourly.

"This change is likely to have the opposite of its intended effect and will clearly harm more workers than it helps," said IFA Executive Vice President of Government Relations & Public Policy Robert Cresanti. "Millions of salaried workers will now become hourly and lose out on key benefits such as workplace flexibility and long term advancement opportunities. This is just the latest example of the Obama Administration unnecessarily meddling in the everyday management of small businesses."

Under the proposed rule, the Obama Administration would nearly double the current threshold for overtime pay from $23,660 to $50,440 for workers working more than 40 hours per week. A public comment period will allow concerned entities and business owners the opportunity to weigh in on the proposed change and provide real world perspective, something the Obama Administration's proposed rule seems to lack. Small business franchise owners are already expressing their concerns.

"This is a very unfortunate and consistent pattern that will prevent many employers from hiring more workers and expanding their businesses. IFA will continue to aggressively oppose this proposed regulation throughout the public comment process," added Cresanti.