Employers generally don’t like being told to raise wages, so itwas not surprising that various employers, including businesses andnonprofits, have objected to a rule change proposed by the Obamaadministration.

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Read: Employers aware, concerned about overtimestatus

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That rule change would dramatically expand the number ofemployees who would be required to receive overtime pay when they work more than40 hours a week.

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The proposed rule would more than double the salary thresholdabove which a worker could be exempt from overtime pay from $23,660to $50,440.

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But one employer group that has had a tough time coming to aposition on the issue is the American Network of Community Optionsand Resources. ANCOR is an association of employers that providecare to people with intellectual disabilities.

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"When we brought this issue to our board, the response wasemphatically, 'Yes, we want to pay the people that work for us whatthey're worth,' " Gabrielle Sedor, chief operating officer of ANCOR,told NPR.

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But Sedor says that after some number-crunching she is hesitantto support such a dramatic change in compensation policy. Andconsidering that the groups providing the services get a largepercentage of their funding from Medicaid, she said they willlikely respond to the policy by asking for more money from thefeds.

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Providers will spend an additional $1 billion a year on overtimepay on employees who currently make between the current thresholdand the proposed one, according to a study the group commissioned.The study based that estimate on the average salary of a workermaking between the two thresholds –– $37,050 –– and the fivehours of overtime that employers reported their employees work.

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In a second scenario explored by the study, employers wouldavoid additional overtime payments by instead raising the salariesof their workers by an average of $13,000. That would cost theorganizations an estimated $1.86 billion.

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Of course, the actual response from employers will include a mixof the two scenarios, in addition to a third strategy: cuttinghours.

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"What's most troubling to me is that over 20 percent (of memberorganizations) thought that they would be forced to reduceservices, and that's a real challenge, because in every state theneed for services to people with intellectual disabilities isgrowing," Sedor said.

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