The Pentagon has planned to increase the number of workers who are qualified for overtime pay rule. But businesses are not very happy with the plan, as according to them it would  hurt more people than help them.

Many small businesses have opposed to the decision of the Obama administration. The National Retail Federation and National Restaurant Association are the first to show their disapproval of the decision. They have argued that although, there will be increase in the number of workers qualifying for overtime pay, the businesses will not have enough money to pay them all. Consequently, there is a big chance that they will change job titles, description and schedule to avoid the pay hike, as per USA Today.

According to the rule, there would be an increase in the number of workers who qualify for time and a half pay when they work for more than 40 hours. Many workers who work for more than US$23,660 (AU$31601) a year will not be eligible for overtime pay. So, the Labor Department is planning to raise the threshold to bring more workers under the rule. But how high the threshold will be raised is not confirmed by the department.

A study conducted by National Retail Federation released on Tuesday showed that US$874 million (AU$1201 million) will be the cost if the restaurants and retailers comply with the overtime pay rule. The study also said that the cost will have a negative impact on workers as they will have very few opportunities for advancement and on top of that their working hours will be reduced, reported The Hill.

David French, senior vice president of government relations at the National Retail Federation, observes, “The plan to revise the overtime rules could cost businesses hundreds of millions of dollars while increasing inequality across the board. It would help very few workers while negatively impacting a large segment of our economy and workforce.”

Nonetheless, some are welcoming the overtime pay rule. Craig Boyan, president of H-E-B Grocery in Texas is one of them.

Boyan said, “It’s good policy “in the hypercompetitive retail industry to pay people as much as we can, not as little as we can.”