An additional $2 million in Missouri’s state budget this fiscal year must be included for a new federal overtime rule that begins in December. House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob) expected that figure to be in the tens of millions of dollars.
“I think what they’re saying is those people just will not be working overtime,” says Fitzpatrick. “Whereas in the past, they probably weren’t working overtime. Now, they are just going to have to make sure they’re not working overtime.”
Fitzpatrick tells Missourinet that state lawmakers will address the issue during the next legislative session.
“I think we actually have a lot of people who are under the threshold and that if they were to work overtime, we would have a pretty significant exposure to that,” says Fitzpatrick.
The rule will extend overtime pay to those making up to $47,000 a year and working more than 40 hours a week. Currently, that threshold is $24,000.
Supporters of the rule say it will help workers receive a fair wage and will help workers provide more for their families. Opponents of the rule say it will force some employers to cut full time workers’ hours and benefits.
The directive, which was mandated by the U.S. Labor Department by way of President Obama, is being challenged by several states. Missouri is not included in the lawsuit at this time.