July 1, 2015 5:04 PM

Texas small business opposes proposed changes to overtime rule

Small business says “Nobody has a pot of gold sitting there to absorb these costs.”

Don’t expect Texas small businesses to be among the crowd applauding Pres. Barack Obama’s announcement of new proposed overtime rules on Thursday.

The Department of Labor, under its administrative rulemaking authority, has proposed lifting the cap on those entitled to overtime pay. Salaried employers making up to $50,440 would be entitled to overtime pay beyond the 40-hour week. Right now, the cap to defer overtime pay for salaried employees is $23,660.

That doubles the threshold for overtime pay for what is typically referred to as the “white-collar exemption.” The rule also provides for automatic annual increases pegged to the consumer price index. Ronnie Volkening of the Texas Retailers Association is not a fan.

“It’s just ham-handed, citing profitable companies as the justification for doing this,” Volkening said. “Small Main Street retailers have to be told, ‘Now you’re going to have to pay these additional people overtime.’ Nobody has a pot of gold sitting there to absorb these costs.”

By Kimberly Reeves