A new federal rule expanding the ranks of managers eligible to receive overtime pay has generated hope among workers and concern among employers.
But surveys taken this month by the Federal Reserve Bank of New York suggest that the new rule, effective Dec. 1, won’t lead to changes at most companies.
Six in 10 service firms in the metropolitan area, and an even higher proportion of factories in New York State, aren’t planning to make changes in how they employ people because of the new overtime wage rule, according to the New York Fed’s polls.
The bank said Wednesday that 59 percent of retailers and other service firms surveyed on Long Island, in New York City and its northern suburbs had no plans to alter compensation, work hours or hiring because of the federal rule aimed at expanding overtime pay.
The same was true for 69 percent of the factories polled across the state.
The bank surveyed about 100 service firms and 100 plants earlier this month.
The overtime rule, from the U.S. Department of Labor, requires managers earning $47,475 or less per year be paid overtime. The cutoff has been $23,660 since 2004; it will now be updated every three years.
Whether the Trump administration will overturn the department’s administrative rule next year isn’t known, though the president-elect has vowed to reduce business regulation.
Among businesses planning to take action because of the overtime wage rule, more than two in 10 said they would reduce workers’ hours to avoid the rule, the bank said. About two in 10 said they would raise workers’ salaries above the overtime threshold.
Separately, the New York Fed said four in 10 service firms and three in 10 factories were planning to hire in the next 12 months. “These balances are slightly less positive, overall, than in the November 2015 surveys,” the bank said.