NM on right track in trying to block OT regs

The intention in new federal overtime rules for some salaried employees may be good but, in typical federal government fashion, the reach is too broad and the potential damage significant.

So New Mexico, which is wrestling with an economic needle that is stuck in park, has joined 20 other states in suing the U.S. Department of Labor to block the rule.

New Mexico Gov. Susana Martinez said that “this new rule not only creates an unfunded mandate for states, but also disrupts our budgeting process, potentially forcing us to divert funds that are already committed to providing critical and essential services to our residents.”

The new federal regulation, promulgated by the Obama administration, will devastate many businesses and nonprofits, and cost jobs.

Currently, supervisors and other exempt employees who make more than $23,660 a year do not qualify for overtime and can be paid a salary. Under the new regulation, which is scheduled to kick in on Dec. 1, workers earning less than $47,476 will be entitled to overtime pay.

The new rule would affect about 20,000 people in New Mexico and could have serious consequences for businesses, including layoffs or reductions in hours.

Some kind of adjustment is warranted, since the minimum amount hasn’t been changed since 2004. But doubling is a recipe for disaster, especially for small businesses and nonprofits. And critics point out that some salaried workers could lose benefits, prestige and work schedule flexibility.

New Mexico is on the right track in trying to slow this train. While some adjustment in the overtime rule may be reasonable, this doubling could make it harder for restaurants, retailers and other small businesses to continue to offer jobs to workers and pay their taxes.