More than four million U.S. workers will become eligible for overtime pay under new federal regulations, but some business groups oppose the changes.
Salaried employees earning $47,476 or less a year must be paid time-and-a-half for working more than 40 hours a week. The previous threshold was $23,660.
Kate Shanks, director of public affairs for the Kentucky Chamber of Commerce, says thousands of Kentucky workers could see themselves return to hourly pay and companies would face millions of dollars in added costs.
"It is something that would impact both private sector employers or for-profit employers, but it could also affect non-profit organizations and educational institutions," Shanks told WKU Public Radio. "The affect in Kentucky could be fairly widespread."
The state Chamber fears that medium and small businesses would likely bear the most financial burden. Employers worried about their bottom lines could react in a number of ways, which could include raising some salaries to avoid paying overtime, switching other employees to hourly pay and limiting their hours, or hiring part-time staff.
The policy change would impact workers in the restaurant and retail industries in particular since many employees are deemed managers and work long hours, but are barely paid more than the people they supervise.
U.S. Labor Secretary Thomas Perez has said new regulations will protect workers and provide them with either more money or more time with their family.
The new rule takes effect December 1.
Copyright 2016 WKU Public Radio
