This Single Labor Rule Hurts Business Owners, Colleges, and Habitat for Humanity
Rodney Kloha feels like he has been backed into a corner by the federal government.
Kloha, of Midland, Michigan, prides himself on running a clean and honest business, Circle K Service Corp., that has grown for nearly 30 years.
But after the Obama administration issued a regulation last month raising the salary threshold for employees eligible for overtime pay, he’s found himself in a bind.
Under the Department of Labor’s new rule, beginning Dec. 1 any employee making up to $47,476 a year must receive overtime pay.
Kloha and his father, Alan, started Circle K Service Corp. in 1987. The company services and maintains fleets of trucks, and also manufactures trucks sold to local fire departments in Michigan.
The elderly Kloha retired last year, leaving Rodney Kloha and his wife to run the Midland business. For nearly 30 years, Circle K Service has been family owned and operated, and today employs 19 workers.
Of Circle K Service’s 19 employees, five are salaried. Of those five, the Obama administration’s new rule affects two.
And that, Kloha said, has left him in a no-win situation.