GRAND RAPIDS, Mich. (WOOD) — Overtime laws slated to change in December are expected to impact 101,000 salaried employees in the state of Michigan but as the implementation date nears, local business leaders are concerned about the impact it will have.
The new law will bring the minimum threshold for salaried employees to just over $47,600 — meaning those with salaries less than that must be paid time-and-a-half for time worked past 40 hours each week. The current threshold is just over $23,600.
Proponents say the change is overdue.
“The payment of overtime is one of the most exploited areas of employment law by employers,” said attorney Robert Alvarez with Avanti Law Group in Wyoming, who specializes in employment law litigation.
“The threshold is higher and many, many, many more employees are going to be able to at least make some sort of living wage and I think that is key.”
The Grand Rapids Area Chamber of Commerce says that business owners are concerned about the change.
“The business community is not real happy about federal government coming in, adding regulations, having an impact on their business,” said GRACC President and CEO Rick Baker. “It’s difficult to find an upside. I think the folks that they’re thinking they’re going to be helping will end up being the ones that have a negative impact.”
Michigan is among 21 states that are participating in a lawsuit to stop the overtime changes from implementation in December.