Proposed overtime law comes with drawbacks

Employers could cut an employee's hours

SPRINGFIELD, Mass. (WWLP) – Next year, millions of American employees will become eligible for overtime pay, but that doesn’t mean you’ll get a bigger paycheck.

Currently, overtime applies if you work more than 40 hours a week and earn $455 a week. The Dept. of Labor is proposing to raise that threshold to $970 a week.

The downside is that employers could cut an employee’s hours, and hire another person to avoid paying overtime. Small businesses may need to lay people off so business doesn’t suffer.

Stephen Roach of Saybrook, CT said, “There should be a plan. Somebody should work it out. But at the same time, not have it automatically done across the board, because that causes either the prices to go up or for people to be laid off.”

The proposal still needs to go through Congress to be enacted.

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