NASHVILLE, Tenn. (WTVF) — A new rule change from the federal Department of Labor could mean that you'll get more money in your paychecks.
But a local government watchdog group is fighting to block the rule change.
I explain in the player above what the fight is about.
Andy Borcher, a professor of management at Lipscomb University, said that starting next year — for applicable jobs that also make less than $58,000 a year in salary — the Biden Administration will require those employees to be paid for any overtime they work.
"It’s a plus and minus story," said Borcher. "I think some of these 4.3 million workers are really going to see a benefit out of it."
But for employers, it could cause them to re-evaluate hours, costs and whether certain employees should have their hours or entire positions eliminated.
"They may consider staffing changes: do I have more part-time workers? A lot of employers like part-time workers. What mix of staff am I going to use to get my job done and manage my costs?" said Borcher.
The Beacon Center of Tennessee, on behalf of their client the Association of Christian Schools International, is suing the feds.
"They help nonprofit Christian schools across the country. It’s going to make them serve their schools harder," said Ben Stormes, an attorney for Beacon Center. "Overall, I think for businesses, workers and the economy as a whole, it’s a net loss."
Stormes argues it's illegal to make this change and it's harmful to nonprofits and small businesses, already working on tight budgets. "They already have their contracts and their budgets made, and now you’re going to interrupt it."
With so many pluses and minuses, Borcher summed it up this way. "Economics is kind of hard sometimes," he said.
The Beacon Center of Tennessee is asking a federal judge to pause the rule change, so they can argue the case in court. If a judge doesn't intervene, the change will go into effect New Years Day.
To see if your job would qualify for the overtime rule change, click here.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
Fostering Hope provides Christmas for kids in foster care. I'm delighted to see Fostering Hope expand this year to expand their reach to now include kids in Foster care in metro AND foster kids in East TN hard hit by Helene.
-Bree Smith
