Obama’s new overtime rules: ‘Career killers’ that will hold workers back

Obama’s new overtime rules: ‘Career killers’ that will hold workers back
Man with pen and phone.

As the Obama administration cheered “the worker wins” from a newly announced expansion of overtime pay, the directive drew a fierce backlash Wednesday from Republicans and the business community — amid warnings that the move could backfire and hurt workers in the end.

“These rules are a career killer. With the stroke of a pen, the Labor Department is demoting millions of workers,” David French, a senior vice president for the National Retail Federation, said in a statement Wednesday morning. …

Under the new rules, first released in draft form last summer, the annual salary threshold at which companies can deny overtime pay will be doubled from $23,660 to nearly $47,500. …

The White House estimates the rule change will raise pay by $1.2 billion a year over the next decade. …

But critics warn workers could actually lose out as employers try to avoid the extra costs by converting salaried workers to hourly ones in order to more closely track working time, and cutting back in general. …

The NRF’s David French said hundreds of thousands of workers in the retail sector alone will lose salaried-employee status.

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