$80,000 per year. Another larger organization estimated its increased cost to be $175,000 due to the impact of not only paying increased overtime, but also adjusting salaries of those higher on the pay scale to maintain internal pay equity. This again places valuable jobs in jeopardy as employers are forced to accommodate this unfunded mandate. These are real-world impacts that, in addition to the effects discussed, make climate less competitive. Pennsylvania’s business The Chamber supports an approach that sets a fair standard for employees, provides a manageable framework for business, and removes political influence going forward: Indexing future increases on an annual basis using the CPI-W index, the same index used to determine annual Social Security benefit increases. If the CPI-W index were to be negative in any given year, there would be no increase in the exemption threshold in the following year. Establish a cap of a three percent increase in any given year, calculated on a 20-year rolling average, instituted to capture fluctuations in a manner that works for business owners while protecting employees. Implementation of a tiered regional wage structure which specifies in a thoughtful manner different rates based on the economic circumstances of the area in question. We propose that consideration should be given to the use of something similar to an MSA model* currently in place at the federal level. While these changes would increase business costs, it would be more manageable for businesses and fairer to employees over the long term by providing a set framework for threshold changes that are tied to economic conditions and outside of political influence. The Chamber supports regulations that: Consider the economic impact on businesses and not-for-profit organizations, as well as on other sectors of the economy Provide adequate time for input Are issued with full transparency as to impact Assure fair compensation Give employers a reasonable amount of time to comply Recognize geographic differences in salary for similar positions The Chamber opposes regulations that: Place undue financial burdens on businesses Reduce scheduling flexibility for employees Increase administrative costs with no net benefit Disproportionately affect small businesses, state and local governments, and organizations --especially those serving our most vulnerable populations
$80,000 per year. Another larger organization estimated its increased cost to be $175,000 due to the impact of not only paying increased overtime, but also adjusting salaries of those higher on the pay scale to maintain internal pay equity. This again places valuable jobs in jeopardy as employers are forced to accommodate this unfunded mandate. These are real-world impacts that, in addition to the effects discussed, make Pennsylvania’s business climate less competitive. The Chamber supports an approach that sets a fair standard for employees, provides a manageable framework for business, and removes political influence going forward: Indexing future increases on an annual basis using the CPI-W index, the same index used to determine annual Social Security benefit increases. If the CPI-W index were to be negative in any given year, there would be no increase in the exemption threshold in the following year. Establish a cap of a three percent increase in any given year, calculated on a 20-year rolling average, instituted to capture fluctuations in a manner that works for business owners while protecting employees. Implementation of a tiered regional wage structure which specifies in a thoughtful manner different rates based on the economic circumstances of the area in question. We propose that consideration should be given to the use of something similar to an MSA model* currently in place at the federal level. While these changes would increase business costs, it would be more manageable for businesses and fairer to employees over the long term by providing a set framework for threshold changes that are tied to economic conditions and outside of political influence. The Chamber supports regulations that: Consider the economic impact on businesses and not-for-profit organizations, as well as on other sectors of the economy Provide adequate time for input Are issued with full transparency as to impact Assure fair compensation Give employers a reasonable amount of time to comply Recognize geographic differences in salary for similar positions The Chamber opposes regulations that: Place undue financial burdens on businesses Reduce scheduling flexibility for employees Increase administrative costs with no net benefit Disproportionately affect small businesses, state and local governments, and organizations --especially those serving our most vulnerable populations