Press of Atlantic City: Overtime change under fire

The proposed change in overtime regulations from the Obama Administration is having a significant impact on how small businesses and franchises conduct business. The plan issued by the Labor Department would raise overtime eligibility from $455 to $970 per week—the threshold at which salaried employees must be paid overtime.

Todd Leff, president and CEO of Hand & Stone Massage and Facial Spa, told the Press of Atlantic City that he recently met with new franchise owners who expressed concern over the proposed overtime change.

“Those owners are very concerned about the impact on their business, not just financially but also changing the relationship between the owner and manager,” Leff told the Press of Atlantic City. “Managers would now basically have to punch a clock, be paid hourly, which would take away some flexibility in their schedules and the hours they work. And the owners would have to limit managers to 40 hours unless they pay overtime.”

Leff also said that any changes could limit the number of training and advancement opportunities for those looking for professional growth within the business.