Virtually all non-supervisory workers will get overtime. 

This from Politico.com

“President Barack Obama will this week release a long-awaited overtime rule aimed at raising wages for 5 million people as soon as 2016, according to sources familiar with the plans.

The proposed rule will more than double the salary level under which virtually all workers qualify for overtime pay whenever they work more than 40 hours in any given week. That threshold, now $23,660, will rise to $50,440.

The regulation would be the most sweeping policy undertaken by the president to assist the middle class, and it would constitute the most ambitious intervention in the wage economy in at least a decade.

Obama will announce the proposed regulation formally on Thursday during a trip to La Crosse, Wisconsin, but details will begin to be released by the White House on Tuesday.”

For more information… http://www.politico.com 

Or, employers will reduce overtime, hire a worker to cut time and a half or use more part-time workers😎

See also http://quinnscommentary.com/2015/06/03/overtime-pay-why-does-our-government-mislead-and-lie/

4 comments

  1. I am not too sure if this will effect big corporations as much as it will affect small business or even small chain clothing stores. Retail which is “relatively” low skill work depends on part-timers now and can hire more people without paying benefits which under Obamacare it seem like they are already figuring that out. I work in a highly skilled industry that works around the clock and I average 415 hours of overtime per year ( and I get paid at union rates and my supervisor at straight time). The point I am trying to make is there is some magical point where it is cheaper for a company to out right pay the overtime money than to train more people and having to pay benefits. I would welcome less mandatory overtime. I think over time businesses will figure away to keep labor cost the same but the question will be at who’s expense?

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    1. You are in a unique position and job I think. The fact your overtime is mandatory pretty much proves your point at least in your situation, other organizations are not like that.

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  2. This is all well and good, but it is going to crush the economy and probably put some smaller businesses out on the street. I worked for a Major Corporation and your 1st 5 hours of overtime were free. Then you got paid straight time. I do not see this as a help. again, this is my opinion, and I could be all wrong. But prices are going to have to increase to offset wages being paid during the overtime period.

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  3. Expect reduction in professionals and expansion in number of supervisors with one direct report (instead of “team leaders”) – individuals will get added duties/responsibilities, no added wages and no overtime. Expect to see reorganization to reduce /delete a layer of professionals – increasing the line of sight for every supervisor.

    And, of course, expect more professional jobs outsourcing to non-US locations. And, where possible, look for increased levels of automation.

    If all of that fails, hire more part time professionals (where benefits need not be extended), cut benefits for full time employees (go to minimum value health plans, eliminate company match in 401(k), or even cut back paid time off) – and let people take their higher wages and buy it back).

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