Kilgore Chamber Opposes New Overtime Regulation

KILGORE – The Kilgore Chamber of Commerce has joined over 40 other Texas Chambers of Commerce, Texas Association of Business and other organizations in opposition of the Department of Labor’s new overtime regulation. The new regulation, which goes into effect December 1st, make millions of more workers eligible for overtime. The White House estimates the rule change will make an additional 4.2 million workers eligible for overtime pay. Kilgore Chamber President Cindy Morris says the chamber board believes the new overtime rule will effect businesses and non-profits with significant new employee costs. She added, “We do agree that an update to the salary threshold may be necessary, however doubling this cost will impact our businesses in a way that is not beneficially to growth of business.

The Department of Labor released the final version of the rule May 18 after nearly a year of debates. Managers and executives currently cannot qualify for overtime if they have a salary of at least $23,660. The new rule will increase the overtime salary exemption to $47,476 when it goes into effect. The chamber board feels, If this regulation is not halted through the filed lawsuit, employers will have to choose to increase an employee’s salary and continue classifying them as exempt, or reclassify them to be eligible for overtime.