Car dealerships may be forced to pay some of their employees more under new overtime rules proposed by President Barack Obama, Automotive News is reporting.
The proposed overhaul for employees who make less than $50,000 a year could impact dealers who make a significant portion of their earnings from salary, rather than commission.
The suggested overtime rules would apply to roughly 40 percent of the American workforce, rather than the 8 percent the current rules apply to now. The Department of Labor estimates more than 5 million workers would be covered by the new rules.
Douglas Greenhaus, an attorney for the National Automobile Dealers Association, told Automotive News that the new rules would apply to mostly support workers in dealerships. Mechanics, service managers or sales staff likely wouldn't be effected.
"This would impact those who get the majority of their pay from salary," Greenhaus said.
The changes would raise the overtime threshold from $23,660 annually to $50,440. The federal poverty line for a family of four is $24,008.
Dealers may cut pay for workers who fall under the new guidelines, Greenhaus said. The NADA would analyze the new rules and lobby the administration based on what dealers may want.
"The important thing is to maintain as much as possible the flexibility for the employer and employee on how to compensate," Greenhaus said.
The public comment period for the new overtime rules ends Sept. 4.
The post Obama's New Overtime Rules May Hit Dealers Particularly Hard appeared first on The Truth About Cars.
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