Both Round Rock and Cedar Park Chambers Of Commerce Oppose Department Of Labor 'Overtime Rule'

AUSTIN, TX -- Both the Cedar Park and Round Rock chambers of commerce will fight against passage of a new U.S. Department of Labor overtime rule that's also opposed by the Texas governor, according to a published report.

Representatives of both chambers told the Community Impact newsletter they are joining more than 50 Texas and national business organizations in opposing the rule, which is set to take effect Dec. 1. The Obama administration has pushed for an update to the rule as a worker protection, raising the threshold of income eligible for overtime pay.

Full-time, salaried workers currently making $23,660 or more per year do not qualify for overtime pay. The new rule proposes increasing that threshold to $47,476..

According to the Department of Labor, the move was designed to benefit more than 4 million workers nationwide with about 370,000 in Texas. But Abbott -- and by extension the local chambers, the U.S. Chamber of Commerce, the National Association of Manufacturers, the Texas Association of Business and 21 other state governments -- view the new rule as too onerous to business interests.

Tony Moline, president and CEO of the Cedar Park Chamber of Commerce, told Community Impact his organization would actively oppose the initiative to raise the overtime threshold for workers.

“It more than doubles the salary threshold for exempt employees overnight, and it will not only have a negative impact on business, but it will have a negative impact on the morale of the employees it will affect,” Moline told the community newsletter.

Moline also raised the possibility the new rule that would allow for more overtime pay might actually have the opposite effect on worker morale given the tactics of having to "punch the clock" to determine their hours worked: “This stops business flexibility and could potentially hurt employee morale,” he told Community Impact.

Moline's counterpart in Round Rock, Mike Odom, echoed similar themes. The president and CEO of the Round Rock Chamber of Commerce said the new rule represents a "...clear and significant negative impact" on local businesses, as reported by Community Impact.

“After reviewing the ruling, our Business Climate Council concluded that it is a significant overreach and a punishing unfunded mandate by a governmental body,” Odom said in a statement. “It will have immediate and long-term ramifications on our business climate not only because of the doubling of the salary threshold, but because of the automatic updates to the salary threshold that will occur every three years. With an effective date of Dec. 1 of this year, it is imperative that businesses get educated on the changes now.”

Texas Governor Greg Abbott this week joined other states in suing the Obama administration over the proposed overtime rule, suggesting it would be harmful to business interests.

>>> Read the full story at Community Impact

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