With payroll rules set to change possibly within weeks, central Illinois Congressman Darin LaHood wants the Obama administration to consider phasing in new overtime regulations.
The Dunlap Republican worked a McDonalds drive-thru lane in Bloomington as a way to illustrate what he says will be an undue burden on small businesses. The Department of Labor is poised to increase the threshold for mandatory overtime pay from an annual salary of $23,660 to $50,440.
LaHood says the change should at least be phased in.
"Why don't we move it to $30,000 and have that take place over the next two years. Then, move it to $38,000. I think there's a way to do this, and a fair and reasonable way. But when you ask businesses to have over a 100 percent increase almost immediately, I don't think that's the way to go about doing it," said LaHood.
LaHood said he met with central Illinois business and non-profit agency leaders over the past week.
"To have this type of increase on small businesses, and not just McDonalds, but car dealerships, Illinois State and Bradley Universities, even non-profit organizations. We heard from the Boys and Girls Club about how this would effect them," said LaHood.
Bob Dobski owns 10 McDonalds Restaurants in central Illinois, eight of them in Bloomington-Normal. He said the change would probably lead to lower salaries among his top managers.
"In the past, we've had at least two salaried managers at each location, sometimes three. But, with this overtime change, we'll probably go down to just one, the general manager, being salaried, and even that would probably be closer to the $50,000 range they're talking about," said Dobski.
Dobski said he feels for directors such as B. J. Wilken at the Bloomington YMCA, who Dobski says will have to alter management strategies to meet the requirements.
"He has a lot of salaried people who are in their mid-30's and mid-40's, and it's going to hurt them having to clock in, clock out, watch overtime , instead of getting a job done, and that's the difference of when a business can be successful," Dobski added.
According to the Labor Department, the proposed overtime rule would make nearly 5 million exempt workers eligible for overtime pay unless their salary is raised. Illinois is among six states that may feel the greatest impact since about 200,000 workers are expected to be newly eligible.
