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CAEDC Sends Letter Opposing “White Collar” Overtime Exemption

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CUMBERLAND VALLEY, PA (September 1, 2015) – Cumberland Area Economic Development Corporation (CAEDC) recently sent a letter to the Director of the U.S. Department of Labor opposing the proposed rulemaking on defining and delimiting the exemptions for executive, administrative, professional, outside sales and computer employees, more commonly known as the “White Collar” overtime exemption.

The letter, which was sent from CAEDC on behalf of the businesses in South Central Pennsylvania, points out the flaws in this potential ruling. First, the increase is not supported by inflationary adjustments. The general increase in salary levels for this exemption is usually between 2.8% and 5.5% a year. The proposed increase would be greater than 10%. If adjusted for inflation, the average salary level would be between $42,000 and $43,000, not the $50,440 proposed by the Department.

This jump could be too substantial for most businesses and would switch many employees from salaried to hourly. Many employees would lose the flexibility that comes with being a salaried employee, and most employers would be unable to afford the overtime. Employers may not be able to absorb the increased costs of this regulation and it could lead to fewer opportunities for growth and hiring.

CAEDC states in the letter that government wage mandates of this magnitude are not a substitute for economic growth and ultimately do little to lift our middle class. CAEDC encourages the Department to scale back to a structure and size that mirrors past updates to the regulation.

CAEDC will also be communicating its concerns by contacting our federal and state delegations. We encourage you to evaluate this proposed legislation as it relates to your business needs and participate in the public comment period which ends on 9/4/15. More information can be found here: http://advocacy.shrm.org/overtime.

If you have any questions or concerns please contact Jonathan Bowser at 717-240-7181.

CAEDC is Cumberland County’s authorized agency charged with leveraging and promoting Cumberland Valley’s economic development and tourism assets to drive growth, create jobs and improve the quality of life. Offices are located at 53 W. South Street, Carlisle PA. For more information, visit www.cumberlandbusiness.com and www.visitcumberlandvalley.com.

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