New Overtime Rules Could Put Squeeze On Operators; AMOA Joins Workplace Coalition

Posted On: 8/1/2016

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TAGS: vending, coin-op, route operations, U.S. Department of Labor's new overtime rule, Amusement and Music Operators Association, Partnership to Protect Workplace Opportunity, small business news, House Small Business Committee, Protecting Workplace Advancement and Opportunity Act, H.R. 4773

WEST DUNDEE, IL -- The U.S. Department of Labor's new overtime rule is creating lots of buzz among large and small businesses. The rules, which go into effect on Dec. 1, 2016, could give many salaried employees, who put in more than 40 hours of work per week, a big lift in their paychecks.

The Amusement and Music Operators Association is among the trade organizations that have been monitoring the new rule, which will raise the threshold for employees who are currently exempt from overtime pay from $23,660 to $47,476. The legislation would phase in the new threshold of $47,476 over the next three years, beginning with a 50% increase ($35,984) in December. Each year following, the threshold would be raised $74 a week until Dec. 1, 2019, when the Labor Department's threshold would be met.

The rule increases the overtime salary threshold by 100%, which could hurt small businesses like amusement and vending operations. So AMOA has joined the Partnership to Protect Workplace Opportunity, an advocacy group for businesses concerned about changes to overtime regulations.

"PPWO consists of a diverse group of associations, businesses and other stakeholders representing employers with millions of employees across the country in almost every industry," AMOA explained. "The partnership is dedicated to advocating the interests of its members in the ongoing debate on the DOL's changes to the Fair Labor Standards Act overtime regulations. Its members believe employees and employers alike are best served with a system that promotes maximum flexibility in structuring employee hours, career advancement opportunities for employees and clarity for employers when classifying employees."

In a recent letter to the House's Small Business Committee, PPWO urged support for the Protecting Workplace Advancement and Opportunity Act (H.R. 4773), which would require the Labor Department to conduct a detailed economic analysis before making dramatic changes to federal overtime requirements and prohibiting any automatic increases.