New Obama administration policies could affect small businesses soon

New changes in overtime pay and insurance could have small businesses tightening their budget next year.

Tuesday evening local business leaders and members of “Home Grown El Paso” met to discuss the new changes.

It’s a move by the Obama administration that could affect millions of people. Proposed are overtime eligibility for 47 percent of the workers in the U.S
and a new Obamacare policy that would have employers shelling out more money to insure their employees.

“What companies are expecting to see are the most significant and sweeping changes to the overtime laws in many years,” said Diana Valdez, labor and employment attorney.

Valdez is also on the Home Grown El Paso board. The organization helps promote and educate local businesses and the topic Tuesday evening:

“In March of 2015 President Obama issued a directive to the Department of Labor to revise basically the rules that govern overtime,” Valdez said.

The way it works now, companies can avoid paying overtime to any full-time workers making as little as $23,660 or $455 a week by classifying them as “exempt” and paying them as salaried employees, rather than hourly. That means they don’t get overtime pay even if they work more than 40 hours a week.

The Department of Labor is proposing raising the $23,660 income to somewhere between $42,000 and $52,000.

Another change coming to small businesses: insurance.

In the past if businesses had more than 100 employees, they would have to shell out some money to have their employees covered.

In January the number drops to 50 employees.

“The restaurants are the ones that have the most employees. They’re the ones with the big problem,” said George Saenz, owner of Cielo Vista insurance.

Saenz works with employers covering their workers.

“It’s getting to a point where they have to buy it. The penalties are a lot higher that getting insurance,” said Saenz.

Saenz says with penalties that can cost up to $2,000 a month, employers are opting to insure their employees but the customer can see the hit.

“That’s going to be put on the price of the food because that money has to come from somewhere,” said Saenz.