YOUR BUSINESS AUTHORITY

Springfield, MO

2016 Year in Review No. 3: Overtime pay expansion put on hold

Posted online

WASHINGTON, D.C, MAY 18­—A new rule announced May 18 by the White House was designed to expand overtime pay to millions of workers, but late judicial moves put the rule on hold for 2016.

Under the new rule, those making a salary of less than $47,476, or $913 a week, would automatically qualify for overtime pay when they work more than 40 hours a week. The current threshold is a salary of $23,660, or $455 a week.

The initial announcement – set to affect an expected 4.2 million employees in its first year, and nearly 45,000 or 2 percent of Missouri’s workforce – sent employers into a tizzy about who was exempt and how to pay for it.

On one side were business advocacy groups, including the Springfield Area Chamber of Commerce and the National Federation of Independent Business, saying the government is out of touch with business realities and the new rule is bad for workers and companies. On the other, labor-centered organizations, such as the National Employment Law Project and the Economic Policy Institute, argued the rule benefits employees and strengthens the economy.

By September, 21 states and a coalition of over 50 business groups filed suit seeking to block the new rule. Missouri was not one of them. The groups claim the rule violates the U.S. Constitution and exceeds congressional authority.

Days before the rule was scheduled to kick in Dec. 1, U.S. District Judge Amos Mazzant in the Eastern District of Texas blocked the Obama administration’s overtime rule.

In the private sector, companies such as Phoenix Home Care Inc. brought its plans to a screeching halt, but in the nonprofit corner, Springfield Ballet Inc.’s directors already ironed out salary and workflow adjustments and they’re upholding those decisions.

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick

From the Ground Up: Culver’s

Springfield’s third Culver’s restaurant is underway at 1400 E. Sunshine St.

Most Read
SBJ Live logo
MOST-WATCHED VIDEOS
Living Quote - Keep Running

“I really do believe that you can have a lot of intelligence and a lot of great ability, but you have to be willing to work to make a difference for your clients,” says Megan Creson, an Associate …

Four Tips for Better Product Labels Not all labels are created equal. Natalie Menzies-Spradlin with Ample Industries gives you four things to think about to make sure your labels are durable, cost effective and meet your product …
Living Quote - Reach for the Stars “My dad encouraged me and told me to continue my education, no matter how hard it is, and now I’m a year into my doctorate degree.” says Melissa Sorah, who works in sales at Youngblood Nissan. …
Networking? Always Follow Up. “I think networking has been key too the core success I’ve had,” says Bruce Nasby, President of Global Advisory Associates. Nasby recommends sending an email specifically detailing who you are, …
Booked - Passion and Perseverance “Being in higher education, we kind of devour books,” says Carol Taylor, President of Evangel University. She recommends Angela Duckworth’s “Grit: The Power of Passion and Perseverance.” …