Economist: overtime pay rule could cause some Missouri businesses to close
From the MissouriNet
A federal rule taking effect in December will have a negative impact on Missouri’s economy, according to Creighton University economist Ernie Goss. It will extend overtime pay to those making up to $47,000 and working more than 40 hours a week. Currently that cutoff is $24,000.
“That’s likely to have some unintended consequences and not all of those unintended consequences are going to be good,” says Goss. “I think Washington is regulating a lot of businesses out of business.”
Goss says the federal government must be careful with its approach when requiring significant labor changes.
“You’re likely to see a cut in benefits, for example. You’re likely to see hours worked cut back so that you’ll have two workers doing what was done previously,” said Goss. “So you could have more jobs added but each worker then will be making less. Of course, that’s not helpful for the overall economy in my judgement.”
Supporters, though, say the rule will help workers receive a fair wage and help them provide more for their families.