Retailers: Obama's overtime rule would cost billions

President Barack Obama’s plan to make more Americans eligible for overtime pay has drawn sharp criticism from a leading retail trade group.

The move, which is estimated to benefit 4.68 million workers and would go into effect next year, would make employees who earn a salary up to $970 a week – about $50,000 a year – eligible to receive overtime under the Fair Labor Standards Act. Currently, the threshold is about half that: $455 a week.

According to the National Retail Federation, the proposed rule change would cost restaurant and retail businesses $9.5 billion annually if no adjustments are made.

Employers would most likely move to cut hours and/or benefits should the rule be adopted, an NRF vice president said.   

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