AWB Statement on New State Overtime Rule for Salaried Employees
The new rule creates a ‘super minimum wage’ that will harm all employers, particularly nonprofit organizations and small businesses
OLYMPIA — Kris Johnson, president of the Association of Washington Business, issued the following statement on the new Executive, Administrative and Professional (EAP) rule announced today by the state Department of Labor & Industries:
“We’re disappointed officials chose to raise the overtime threshold by such a large amount. The current rule needed updating, but this new rule will require employers to pay salaried workers more than $83,000 per year by the time its fully implemented. This is a huge increase over the current rule, and one that is likely to carry unintended consequences, especially for small businesses and nonprofit organizations.
“For small businesses and nonprofits that can’t afford to pay overtime, the new rule could lead to a reduction in services or program offerings. It could also force some organizations to reclassify employees from salaried to hourly positions, leaving employees with fewer opportunities for advancement and a loss of schedule flexibility.
“We look forward to working with legislators in the upcoming legislative session to address the concerns this raises, both for employers and employees.”