All employers in Montana should be informed of a new rule, thanks to “a Big Brother move” by the U.S. Department of Labor. This proposal would significantly change which employees are eligible to be salaried and which must be hourly workers.
The current situation allows for management and administrative employees earning over $23,660 to be classified as “exempt,” salaried workers. The new DOL rule would change that threshold to $50,440. Many workers who are currently salaried would be re-classified as hourly workers, bringing a major problem to those of us who work with state budgets.
It’s a big change, with consequences both for the employer and the employee. More employees tracking hours will bring increased personnel costs. Workers who are currently salaried will find they have less flexibility over when they work and may see cuts to pay and benefits.
I’m very concerned about our state budget. Many government workers, now salaried, will be reclassified as hourly workers and start punching the clock again. Increasing personnel costs for the state could result in cuts to services.
As a member of House Appropriations Committee since 2011, I know how hard it is to fund all of state government. This proposal looks like an unfunded mandate by the federal government, and it would rob from badly needed programs. Cities, counties, non-profits and small businesses should beware.
Montana employers and employees don’t need to be blindsided by this rule; we have an opportunity to block it. We need our congressional delegation to support the Protecting Workplace Advancement & Opportunity Act (S. 2707 / H.R. 4773). Direct DOL to scrap this rule and start over on a replacement that won’t have detrimental consequences to our economy.
Rep. Mike Cuffe
Eureka