WASHINGTON, D.C. – In response to this week’s announcement that the Department of Labor published its final rule regarding overtime exemption regulations of the Fair Labor Standards Act, Republican governors slammed the Obama administration for pushing this job-killing rule that circumvents the states, raises costs, decreases jobs, and hurts small businesses:
“As a governor responsible for balancing budgets and living within our means, I am concerned that this new rule not only creates an unfunded mandate for states, but also disrupts our budgeting process, potentially forcing us to divert funds that are already committed to providing critical and essential services to our residents,” said New Mexico Governor Susana Martinez. “This rule will also place a heavy burden on small businesses in our communities.”
“It’s unfortunate that the Obama Administration is moving forward with a rule that restricts the flexibility of states and threatens priorities that were designed to respond to the unique needs of our states,” said Wisconsin Governor Scott Walker. “Due to the ripple effect this new rule will have on the economy, everyone from small business owners to university students alike will be forced to shoulder this new mandate from the federal government.”
Background: As part of President Obama’s effort to overhaul the rules that govern federal wage and hour standards, the Department of Labor this week released a final rule that nearly doubles the salary threshold requirements for employee overtime. As a result, public and private employers throughout the country will be required to pay overtime to virtually all employees making under $47,476 annually. This nearly doubles the current threshold that requires time-and-a-half for employees earning under $23,660 annually. The mandate is effective December 1.