Auto Care Association Disappointed in Overtime Ruling - Tire Review Magazine

Auto Care Association Disappointed in Overtime Ruling

The Auto Care Association is disappointed in the Department of Labor’s final rulemaking on overtime pay regulation, the association said. The final rule, effective Dec. 1, 2016, increases the salary threshold for overtime eligibility to $47,476.

The association previously submitted comments against an overtime increase.

“This unprecedented, industry-wide reclassification of a significant portion of our workforce will be severely disruptive to current levels of employee wages and benefits, and the very real probability of the consequent change (negative) in employee morale will affect every aspect of our day-to-day business functions,” the Auto Care Association shared.

“Members fortunate enough to be aware of the coming changes are already beginning the reclassification of many employees as well as revisiting overall wages and benefits,” said Bill Hanvey, president and CEO, Auto Care Association. “One association member has already advised us that he ‘has to inform 10% of his employees that they are now hourly, not salaried’ and he doesn’t know how to deliver that message. Even more troubling is the large number of companies in the auto care industry who remain unaware of the change in regulation and its consequences.”

“No one is arguing that the rules didn’t need updating, but the massive change, all at once, will be financially disruptive and possibly devastating for many businesses. The association and the coalition for the Partnership to Protect Workplace Opportunity are asking members of Congress to support the Protecting Workplace Advancement and Opportunity Act,” said Hanvey.

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