Team Obama Finalizing Rules On Expanding Overtime Rules

It’s laudable that Team Obama is attempting to increase wages for workers. Too bad they have no idea what they’re doing, because most of them, including O, have never worked in the private sector and never had to balance a spreadsheet, have never had to pay workers, never looked at a profit/loss sheet

(Money) If you’re a salaried worker making under $47,000 a year, you could be in luck: A new rule could make you eligible for overtime pay.

The new rule, expected to be passed by the Labor Department as early as this week, would make some management, administrative and professional employees eligible for overtime pay when they work more than 40 hours a week, USA Today reported. Currently, such workers who earn more than $26,660 a year are exempt from getting overtime, but a new rule proposed by the department last summer would raise that threshold to $50,400.

However, some legal experts say the final version of the regulation likely places the threshold closer to a salary of $47,000—meaning that 5 million salaried workers are expected to be eligible for overtime under the rule. The change would most directly affect the service industry, particularly workers in hotels and restaurants, Gary Chaison, a professor of labor relations at Clarkson University, told Marketplace.

Here’s the thing: if you accept a management position, one which is salaried, companies usually expect you to work more than 40 hours a week with no OT. That’s just the nature of business. I certainly agree with the rule on those making under $26,660, because that is clearly an attempt by businesses to get a lot of work out of a low wage worker without paying them properly. If you’re salary is $45,000 a year? That’s a bit different

Indeed, there could be a raise on the horizon for the approximately 1.2 million Americans that the Labor Department estimates will receive increased wages or a higher base salary as a result of the rule change. However, the bad news is a large number of small businesses are expected to instruct their employees to work no more than 40 hours a week because they can’t handle the additional costs.

To account for the productivity loss, these companies will likely hire part-time workers or cut the base pay of affected employees. Others will switch salaried workers to hourly employees and ask them to track their hours, according to the National Federation of Independent Business.

There are consequences to mucking around with the private sector, making Governmental demands, and they so often do not turn out well for the workers the rules are supposed to help.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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