Moran: Overtime rule bad for Kansas businesses, schools

Sen. Jerry Moran on Wednesday called the Department of Labor’s new overtime rule “heavy handed” and said it’s a bad development for Kansas businesses.

Moran, R-Kan., made his statements during a stop at the Hyatt Regency Wichita for a Federal Forum luncheon with Wichita Metro Chamber of Commerce members.

“The politics of this is usually seen as the Department of Labor reining in big, bad business,” Moran said. “While there are plenty of consequences for businesses in these new regulations, they have huge implications for educational institutions.

“While the conversation of who qualifies to be a worker with an hourly wage should occur, the method by which the Department of Labor has reached a conclusion is damaging to the economy.”

More than 4 million U.S. workers will become eligible for overtime pay under rules issued last month by the department.

The policy changes, which will go into effect Dec. 1, are intended to counter erosion in overtime protections, which date from the 1930s and require employers to pay 1.5 times a worker’s regular salary for any work past 40 hours a week.

Moran also said a National Labor Relations Board redefinition of what a joint employer is will hurt Wichita businesses.

“Where Wichita stands out to me on this is with franchisees and franchisors,” Moran told a crowd of about 115. “The franchisor is being presumed to direct the activity of an employee who works for the franchisee. They’re combining all this into one and making liable the franchisor for the franchisee’s employee wages and hours.”

In addition to commenting on the recent rains in Kansas – “It’s nice to see water in the Arkansas River” – Moran said:

▪ He’s disappointed by the continued delay of the delivery of a number of Boeing KC-46A tankers to Wichita’s McConnell Air Force Base, though he said other good things are happening at the base.

Moran said he’s pleased that the Senate recently approved nearly $20 million for construction projects at McConnell, including a new air traffic control tower and taxiway.

▪ The aging air traffic controller workforce population in the aviation industry is causing a desperate need for workers.

▪ While he thinks a Hillary Clinton White House would be problematic, Moran stopped short of an outright endorsement of anticipated Republican presidential nominee Donald Trump.

“In most cases, elections come down to two choices,” Moran said. “People have to make a decision.

“In my view, Clinton is very damaging to the country.”

This story was originally published June 1, 2016 at 6:19 PM with the headline "Moran: Overtime rule bad for Kansas businesses, schools."