The Louisiana Association of Business and Industry this morning sent a formal request to U.S. Department of Labor Secretary Thomas E. Perez to ask the agency to delay implementation of the new federal overtime rules in the 22 Louisiana parishes that received a disaster declaration during last month’s historic flood.
Earlier this year, the U.S. Department of Labor finalized rules to require salaried workers earning less than $47,476 to be eligible for overtime pay. The new regulations are scheduled to go into effect nationwide on Dec. 1.
The new overtime pay rules will “force a choice for flood-affected employers—delaying much-needed recovery efforts or spending more of the limited dollars available for this recovery to cover the higher costs of labor when the rules takes effect,” reads the letter from LABI, which is signed by its president and CEO Stephen Waguespack.
Waguespack goes on to say that the overtime pay rules would “especially hamper small businesses, which were those most significantly affected by the flooding.” And to the extent they suffer, says Waguespack, so too will the community.
“Employees will remain out of work. Goods and services will not be available to consumers,” he writes. “The economy in this region could stagnante.”
Meanwhile, LABI is hosting a free seminar on Tuesday, Sept. 20, to advise employers, human resource managers, attorneys and others on how to prepare for and comply with the new federal overtime rule. Get complete event details and register to attend.
