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http://www.usatoday.com/story/money/business/2014/03/12/obama-administration-to-broaden-overtime-pay-rules/6325693/

Business groups and corporate lawyers assailed a White House plan to expand overtime eligibility to millions more workers, saying the move could hurt job growth, worker productivity and the economy.
"We understand the administration is looking for ways to put more money in people's pockets, but the only way to do this is to grow the economy and create more jobs," says Marc Freedman, executive director of labor law policy for the Chamber of Commerce. "Adding more burdens to employers will not accomplish that goal."
President Obama on Thursday plans to order the Labor Department to revamp rules that allow businesses to avoid paying overtime to fast-food and retail managers, among others, administration officials said. Currently, such salaried workers are exempt from the time-and-a-half overtime pay mandate if they earn more than $455 a week and are classified as executive, administrative or professional employees.
"What we're going to be doing is, in the weeks and months to come, looking deeply at this problem and making sure that the overtime provisions are working as well as they should in today's economy," said Betsey Stevenson, a member of the president's Council of Economic Advisers.
Obama's order would substantially increase the pay threshold, which was last changed in 2004, and amounts to $23,600 a year. "Right now, it's ridiculously low," says Catherine Ruckelshaus, legal co-director of the National Employment Law Project.
Also, fast-food managers or assistant managers may be classified as executives even if they spend most of their days running cash registers and cleaning tables, as long as management is considered their "primary" duty. New rules would set a minimum amount of executive work employees must perform in order to meet the classification, making millions of workers newly eligible for overtime.
The overtime expansion is part of a multi-pronged administration effort to increase wages for low- and middle-income Americans which have largely stagnated in recent years. Obama is supporting an increase in the federal minimum wage to $10.10 an hour from $7.25.
But the chamber and other business groups say that employers hit with higher overtime charges likely will reduce hiring and take other steps to offset those costs, such as outsourcing certain tasks.
"We are concerned that, at the levels being discussed, this would have a severe impact on employment and the economy," says Mike Aitken, vice president of government affairs for the Society for Human Resource Management.
Richard Alfred, chairman of Seyfarth Shaw's national wage-and-hour practice, which represents employers in lawsuits, is equally concerned but predicts the opposite effect. Most employers, he says, will respond to the new directive by limiting the hours of existing workers to avoid paying costly overtime.
"This won't necessarily translate into more pay in the pockets of those workers," Alfred says. Instead, he says, companies will hire more workers.
Jared Bernstein, a former member of Obama's economic team, says brisker job growth would be a positive outcome as well. "That scratches another big issue in our economy right now, which is weak job creation."
Alfred, however, says many companies will likely hire contractors or temporary workers to meet spot needs for specific projects. Such workers typically don't enjoy the stability or benefits of full-time employees. And he says the higher costs will force businesses to raise prices, crimping consumer spending and the economy.
Some firms could take a different approach, reducing the basic wages of management workers to account for the new overtime expenses and leaving employees no better off, says Dan Yager, president and general counsel of the HR Policy Association.
The administration notes that two states already have significantly higher weekly salary thresholds for exempting mangers from overtime requirements, with New York at $600 and California at $640. In 2016, New York's threshold will rise to $675 and California's to $800.
A lack of clarity in the current federal rules has helped spawn a record number of lawsuits. For example, many employees sue for overtime pay, arguing that their "primary" duty can't be managing if they spend most of their time on menial tasks. But Alfred says the planned rules change will likely lead to even more suits.
Stevenson, of the Council of Economic Advisers, says the goal is to "modernize" the overtime rules.
"We're going to be taking a look at the labor market, taking a look at workers, and figuring out how we can make this rule work best for businesses," she said.

beejmi
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Companies will just reclassify people to avoid this. I am an hourly employee at a Philadelphia newspaper, I get paid for 40 hours a week, I haven't left after just "8 hours" in any one given day in over a year. And never paid OT.

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beejmi wrote: Companies will just reclassify people to avoid this. I am an hourly employee at a Philadelphia newspaper, I get paid for 40 hours a week, I haven't left after just "8 hours" in any one given day in over a year. And never paid OT.


Yep. 

Some of the opponents are correct in saying that the way to put more money in the pockets of people is through jobs!....jobs!  and jobs!  

If they were serious about this matter and were not afraid of getting spanked by the fat cats, they would look to start evening out the trade imbalance and at the very least neutralizing the manufacturing that has went off-shore and continues to be promoted as a means to boost profits at the expense of the workers. Go back and open the books on some of these free trade agreements.....these were nothing more than another failed economic theory just like the trickle-down solution. 

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beejmi wrote: Companies will just reclassify people to avoid this. I am an hourly employee at a Philadelphia newspaper, I get paid for 40 hours a week, I haven't left after just "8 hours" in any one given day in over a year. And never paid OT.

I don't get how you are paid a set amount (40 hours per week x your wage) and you aren't considered a Salaried Employee.
In fact, employers will just reclassify everyone as a Salaried Employee that they can, and that will be the end of that.
If you aren't in a union if this thing ever comes through, you're proper-fucked.

beejmi
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khawk wrote: beejmi wrote: Companies will just reclassify people to avoid this. I am an hourly employee at a Philadelphia newspaper, I get paid for 40 hours a week, I haven't left after just "8 hours" in any one given day in over a year. And never paid OT.

I don't get how you are paid a set amount (40 hours per week x your wage) and you aren't considered a Salaried Employee.
In fact, employers will just reclassify everyone as a Salaried Employee that they can, and that will be the end of that.
If you aren't in a union if this thing ever comes through, you're proper-fucked.


they work it like I am salaried when it is in their best interests to be salaried. And I am hourly when it is in their best interests to be hourly.

Amazing~I am both!

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Too silly to even comment on.  I remember one of the big knocks on McCain was how clearly ignorant he was to any type of economic theory at all.  Just no grasp of even the simplest concepts that any college Econ 101 student would know.  Didn't even know what The Fed did.  And now along comes Obama, Mr. Harvard Law School, and not only does this Constitutional Law expert shred the Constitution like he's Bush III, but he also shows not the simplest grasp of economic theory.  And I know he's not that dumb.  If he would take a fucking breath and realize that he has nothing else to run for, and that he can tell the truth and his uneducated disciples will still follow him, then we can avoid an even bigger employment catastrophe than we already have.  But he's been so warped by the office and his "advisors", who are all in PR and don't know anything about pi except how to eat it, that he's lost all common sense.  Just like what happens to them all the last 100 years or so.  You don't vote for a president anymore, you vote for his PR team, and they're all the same PR team.   

Last edited on Fri Mar 14th, 2014 03:45 pm by srossi

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Doesn't this have to do with health care? I could be wrong but I thought "salaried employees" have to be offered health care by their employers, while "hourly employees" do not. Pushing the OT issue is going to screw a LOT of people, because companies will just go WalMart on them and hire a ton of people part time, less than 30 hours a week.

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Seems like everything this administration does makes absolutely no sense. They recognize a problem, like healthcare, and people making less money, but then offer a fix that will ABSOLUTELY in no way help the situation. I'll say it again, I've used this analogy before, it's like they were a garage, you bring your car in with a blown motor, they keep it for a week then when you pick it up they say "Yep, motor was totally locked up..we changed your plugs and flushed your radiator for ya, here ya go!"

In no way does that fix the actual problem..

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I believe this threshold should be adjusted for inflation and that's about it.

srossi

 

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Married Jo wrote: Seems like everything this administration does makes absolutely no sense. They recognize a problem, like healthcare, and people making less money, but then offer a fix that will ABSOLUTELY in no way help the situation. I'll say it again, I've used this analogy before, it's like they were a garage, you bring your car in with a blown motor, they keep it for a week then when you pick it up they say "Yep, motor was totally locked up..we changed your plugs and flushed your radiator for ya, here ya go!"

In no way does that fix the actual problem..

The new talking point regarding "affordable healthcare" that people are finding out is not really affordable in Obamacare is...get rid of your cell phone.  This sounds like I made it up, but you can't make this shit up.  Forget about the fact that Obamacare is still more expensive than almost every cell phone plan out there, even if it wasn't, you spent 5 years talking about how cheap this would be and now you're telling people to get rid of what is pretty much a basic necessity in this day and age (especially if you have or are trying to find a fucking JOB) so that you can afford something that previously you were not obligated to have. 

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Yeah, but then you can get rid of your cellphone and get one of those government free cellphones...which maybe is what they wanted us all to do anyway..

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Healthcare should have been universal single-payer, but both parties are sucking on the tits of the insurance companies.

Last edited on Sat Mar 15th, 2014 05:57 am by Papa Voo



 

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PV hit the nail on the head. The worst thing to happen to this country in the last 60 years was allowing insurance companies to become for profit.

Last edited on Sun Mar 16th, 2014 07:25 am by

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were there insurance companies that were non-profit?

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timtass wrote: were there insurance companies that were non-profit?

yeah, theyre called medicade. medicare and stuff.  (Cept for that the companies that provide the service make a profit and stuff). 

The current system of the US gubment law does NOT allow for a system like Europe and Canada have.  Doesn't make us better, doesn't make us lesser, just the way shit currently is. 

That same system allows a Freedom of Speech, Guns, etc that isn't allowed there.  Its not perfect but its what we have and it could damn sure be worse.  Nobody in the US gets thrown in Federal pound me in the ass prison for pissing on their leadership.  Even in Canada they can. 

 



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