Obamas Overtime Pay Law

#5
#5
A study

http://mercatus.org/sites/default/files/Boudreaux-Overtime-Pay-Regs-v2.pdf

This paper examines the US Department of Labor’s proposed regulation to extend overtime pay
to employees with base salaries of $23,660 to $50,440. We find that the department provides no
evidence that an “underpayment” or “overwork” problem exists in the United States.
Nonetheless, we evaluate the stated policy objectives. The Department of Labor indicates that
the proposed regulation will meet three policy objectives: spread employment, improve worker
health and well-being, and increase wages for employees. We find problems in the theoretical
mechanisms by which these policy objectives are to be met and conclude that those mechanisms
are not supported by economic theory. Furthermore, in a review of the empirical literature, we
find no empirical support for achieving any of the policy objectives. That is, there is neither
theoretical nor empirical support that the proposed regulation will meet its stated objectives; in
fact, evidence suggests that moonlighting may increase in response to regulations. Finally, we
anticipate that the proposed regulation would have a structural impact on the economy because
salaried jobs may turn into hourly wage jobs. We believe such a shift will have a negative impact
on certain labor contracts that would be ill suited to hourly pay—specifically, technology start-up
and telecommuting jobs. Given that the birth of start-ups is on a decline and the death of startups
is at a peak, we believe it would be unwise to further hamper the technology start-up market
by adopting the proposed regulation.
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#6
#6
You will see less salaried jobs and more $12 an hour jobs. That's the way the game is played.
 
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#7
#7
I am base salary a couple grand over the upper limit and work 55 hours a week. This law will not effect anyone at my company.
 
#8
#8
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#9
#9
Carl Pickens said:
Considering this legislation is brought to us by the same administration that gave us Obamacare, cash for clunkers, and the stimulus package this is no shock.
Speaking of the stimulus package..... Was there even ONE infrastructure project completed as a result of this POS that included all those shovel ready jobs?
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To quote Gary Johnson about those shovel ready jobs. "My dog has created more shovel ready jobs than this president."
 
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#11
#11
Going to be interesting to see how a place like a CPA firm handles this. Tax time brings big hours, not many places are going to pay a new staff $48k to keep them exempt. Maybe they do comp time later in the year? DOL also considers checking email via phone and that kind of stuff on the clock. So you restrict your employees from doing that or send them home early to account for it? And how will people who worked hard to get into a salaried position feel about having to track time or punch a clock again?
 
#13
#13
volfanhill said:
You will see less salaried jobs and more $12 an hour jobs. That's the way the game is played.
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I see this as affecting the hospitality and restaurant business particularly. In the restaurant business is there generally a big difference in benefits between salaried "managers" and hourly employees?
 
#14
#14
hog88 said:
I see this as affecting the hospitality and restaurant business particularly. In the restaurant business is there generally a big difference in benefits between salaried "managers" and hourly employees?
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I have been hiring managers in between $48k- $50k the last three years. They make bouns as well. So this didn't impact us at all. I imagine it impacted fast casual and fast food hard. An hourly person for us would top out at $18 an hour and those are few and far between. Now a good server or bartender makes more then that.

As far as benefits go they don't change much. They probably do with a smaller outfit. Very few of hourly people take advantage of the benefits we offer.
 
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#18
#18
Carl Pickens said:
Considering this legislation is brought to us by the same administration that gave us Obamacare, cash for clunkers, and the stimulus package this is no shock.
Speaking of the stimulus package..... Was there even ONE infrastructure project completed as a result of this POS that included all those shovel ready jobs?
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The city of Alcoa constructed a pedestrian bridge across Alcoa highway. I frequently drive under this bridge and have never seen a pedestrian on it.
 
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#19
#19
Carl Pickens said:
Considering this legislation is brought to us by the same administration that gave us Obamacare, cash for clunkers, and the stimulus package this is no shock.
Speaking of the stimulus package..... Was there even ONE infrastructure project completed as a result of this POS that included all those shovel ready jobs?
Click to expand...

There were 2 lanes added to Hwy 79 from the big town of Milan to the metropolis of Atwood. In total around 3 miles. All for the 100 cars and 3 tractors that travel through there daily.
 
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#21
#21
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#24
#24
hog88 said:
Seriously, you guys get paid by the hour or trip?
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By the minute actually. And remember this: If you can physically see a pilot (i.e. not locked behind the cockpit door) he is not being paid. We do not start getting paid until the airplane moves backward from the chocks. I am not getting paid for doing a preflight walkaround or running checklists prior to movement of the airplane. We do get per diem that starts when we clock in at our home base, but it is woefully below the national per diem rate allowed by the government.
 
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#25
#25
SpaceCoastVol said:
By the minute actually. And remember this: If you can physically see a pilot (i.e. not locked behind the cockpit door) he is not being paid. We do not start getting paid until the airplane moves backward from the chocks. I am not getting paid for doing a preflight walkaround or running checklists prior to movement of the airplane. We do get per diem that starts when we clock in at our home base, but it is woefully below the national per diem rate allowed by the government.
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If we were in some tropical paradise, we'd find something wrong with the plane that would ground it and wait for parts to come in. It was a great life i lived, thanks tax payers. :)
 
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