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Author Topic: White House aims to force firms to pay more overtime  (Read 1351 times)

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Offline markomalley

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White House aims to force firms to pay more overtime
« on: May 18, 2016, 01:08:21 am »
From  the Washington Examiner:
Quote
The Obama administration finalized a rule Tuesday intended to force businesses to pay more overtime, doubling the annual salary a worker must make before he can be exempted from the legal requirement to be paid time and a half after working 40 hours in a week.

The new annual salary threshold will be about $47,500 to be deemed "managerial," up from about $23,700. The White House estimates that the change would extend overtime coverage to 4.2 million additional workers. The rule will take effect Dec. 1.

The rule had been long expected and is highly controversial. Business groups have complained loudly, arguing that the economy is still too fragile to be increasing labor costs and that small companies in particular will not be able to afford the added expense.

Yet more fundamental transformation...
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Offline ExFreeper

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Re: White House aims to force firms to pay more overtime
« Reply #1 on: May 18, 2016, 01:21:12 pm »
Quote from: markomalley on May 18, 2016, 01:08:21 am
From  the Washington Examiner:
Yet more fundamental transformation...

I'm not sure where I stand on this?  I have worked over 40 hours each week most of my adult life and have never received overtime.  I believe employees should be payed according to their contribution.  Am I wrong?
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Offline driftdiver

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Re: White House aims to force firms to pay more overtime
« Reply #2 on: May 18, 2016, 01:32:02 pm »
Quote from: ExFreeper on May 18, 2016, 01:21:12 pm
I'm not sure where I stand on this?  I have worked over 40 hours each week most of my adult life and have never received overtime.  I believe employees should be payed according to their contribution.  Am I wrong?

I'm a business owner and employees should be payed according to their contribution.  The idea that this means overtime pay is shortsighted at best.   Small business simply doesn't have the money in the budget to pay vast amounts of overtime.  Its just not there.  Large businesses may have the money but they aren't going to increase labor costs.

This will drive businesses to reorganize or restructure job positions to eliminate the need for overtime pay.   In my case I was going to hire sales people at a low base but high commission structure.   I can't do that anymore so instead I'm outsourcing parts and converting the positions to lower paid without a generous commission.
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Offline ExFreeper

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Re: White House aims to force firms to pay more overtime
« Reply #3 on: May 18, 2016, 01:48:44 pm »
Quote from: driftdiver on May 18, 2016, 01:32:02 pm
This will drive businesses to reorganize or restructure job positions to eliminate the need for overtime pay.   In my case I was going to hire sales people at a low base but high commission structure.   I can't do that anymore so instead I'm outsourcing parts and converting the positions to lower paid without a generous commission.

Appreciate your response.  Question:  Why not simply increase base to over $47.5k while lowering commissions?   I understand sales' positions need incentives to sell.
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"A major source of objection to a free economy is precisely that it gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself." - Milton Friedman

Offline driftdiver

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Re: White House aims to force firms to pay more overtime
« Reply #4 on: May 18, 2016, 01:57:42 pm »
Quote from: ExFreeper on May 18, 2016, 01:48:44 pm
Appreciate your response.  Question:  Why not simply increase base to over $47.5k while lowering commissions?   I understand sales' positions need incentives to sell.

Because in my business I've tried the high base model.   It doesn't work.  The senior folks worth a high base need a support staff to generate leads.   Junior folks are happy with the base and aren't motivated.   

Earning potential of $150k but they'd rather sit back and coast.  Not to mention if I make a sales person hourly then I have to pay travel time.   They suddenly get stuck in traffic enroute to offsite networking events which seem to last a LOONG time into the evening.  Forget about flying a sales person to another city to meet with a customer. 
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Offline Relic

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Re: White House aims to force firms to pay more overtime
« Reply #5 on: May 18, 2016, 02:02:27 pm »
Quote from: driftdiver on May 18, 2016, 01:32:02 pm
I'm a business owner and employees should be payed according to their contribution.  The idea that this means overtime pay is shortsighted at best.   Small business simply doesn't have the money in the budget to pay vast amounts of overtime.  Its just not there.  Large businesses may have the money but they aren't going to increase labor costs.

This will drive businesses to reorganize or restructure job positions to eliminate the need for overtime pay.   In my case I was going to hire sales people at a low base but high commission structure.   I can't do that anymore so instead I'm outsourcing parts and converting the positions to lower paid without a generous commission.

I'm sure Hillary won't continue with such burdensome regulations!  :silly:
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Offline driftdiver

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Re: White House aims to force firms to pay more overtime
« Reply #6 on: May 18, 2016, 02:04:49 pm »
Quote from: Relic on May 18, 2016, 02:02:27 pm
I'm sure Hillary won't continue with such burdensome regulations!  :silly:

I'm sure she will.

Where does Trump stand?   Does he even know?
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Offline driftdiver

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Re: White House aims to force firms to pay more overtime
« Reply #7 on: May 18, 2016, 02:07:58 pm »
Quote from: ExFreeper on May 18, 2016, 01:21:12 pm
I'm not sure where I stand on this?  I have worked over 40 hours each week most of my adult life and have never received overtime.  I believe employees should be payed according to their contribution.  Am I wrong?

BTW nothing is stopping people from going to their boss and asking for a raise or a bonus.  Good employees are worth it.

Why do we look to the govt for everything?
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Offline RetBobbyMI

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Re: White House aims to force firms to pay more overtime
« Reply #8 on: May 18, 2016, 02:09:42 pm »
Quote from: driftdiver on May 18, 2016, 02:04:49 pm
I'm sure she will.

Where does Trump stand?   Does he even know?
Trump will either fire them or hire foreign workers cheaply.  :pondering:
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Offline Relic

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Re: White House aims to force firms to pay more overtime
« Reply #9 on: May 18, 2016, 02:14:37 pm »
Quote from: driftdiver on May 18, 2016, 02:04:49 pm
I'm sure she will.

Where does Trump stand?   Does he even know?

Nope. As much as I detest Hillary, Trump only bests her, in my opinion, because he's an unknown.
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Offline driftdiver

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Re: White House aims to force firms to pay more overtime
« Reply #10 on: May 18, 2016, 02:20:09 pm »
Quote from: Relic on May 18, 2016, 02:14:37 pm
Nope. As much as I detest Hillary, Trump only bests her, in my opinion, because he's an unknown.

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Offline Relic

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Re: White House aims to force firms to pay more overtime
« Reply #11 on: May 18, 2016, 03:19:44 pm »
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Offline driftdiver

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Re: White House aims to force firms to pay more overtime
« Reply #12 on: May 18, 2016, 04:31:45 pm »
Quote from: Relic on May 18, 2016, 03:19:44 pm
And then there's Hillary...



Well played sir.

I just don't think it's accurate.  Hillary would have sold the bullets to the Chinese or russians.
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geronl

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Re: White House aims to force firms to pay more overtime
« Reply #13 on: May 18, 2016, 11:18:37 pm »
I thought ObamaCare redefined full time as 27 hours...
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Offline markomalley

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Re: White House aims to force firms to pay more overtime
« Reply #14 on: May 19, 2016, 01:34:55 am »
Quote from: ExFreeper on May 18, 2016, 01:21:12 pm
I'm not sure where I stand on this?  I have worked over 40 hours each week most of my adult life and have never received overtime.  I believe employees should be payed according to their contribution.  Am I wrong?
Having managed both exempt and nonexempt employees, I can say that there is a massive difference in the basic technique in lawfully managing each. The basic difference is that, in general, exempt employees can be managed by task while nonexempt employees must, by law, be managed by time.

I will fully allow that there are some employers who will hire people fully expecting them to put in 50, 60, 70 hours a week from the onset. Hopefully those employers reimburse their staff accordingly.
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