Mandatory overtime payments with salaried employees

http://www.npr.org/2016/05/17/47846...ign=npr&utm_term=nprnews&utm_content=20160518

This article talks about the legislation. It passed this week. Goes in effect in December in the states.

What are some thoughts on this other than "oh snap! I'm about to lose my job?"

I had more written. Out but I'm panicked right now. I worked hard to get to the salaried level and there is no way where I'm at can pay me that with the other people here.

 

It is interesting...and can certainly go both ways. Many companies take advantage of salaried employees and work them unreal amounts of hours. I repeatedly worked 80 to 100 hours/week in the restaurant business as a salaried employee...on the other hand I had a certain level of job security.

I would bet mid level managers will take a hit.

 

Why wouldn't they adjust everyone to hourly and cut back their hours? Or at least some of their hours?

 

The hourly wage paid to an employee is only part of the "cost" to an employer. There is varying degrees of this but some industries have a 50% additional cost per hour which is often referred to as the loaded cost. Where it gets sticky is if you have to add another worker to split that 80-100 hour workweek. The costs don't flow through evenly and the additional fixed costs like insurance, accounting, payrole taxes and supervision can raise the loaded cost across the board.
No way am I saying that its the right way to run a company- no one on salary should work more than a nominal amount of uncompensated over time say 10%.

 

We've experienced salaried positions where there is no overtime, and it is expected that employees in that position work at least 10 hours of unpaid overtime a week. And at least some of the weekend. I've seen it where I've worked, too. If you can get your work done in a normal 40 hour week, some managers will penalize you and give you poorer performance ratings and lower raises than people who take 50 hours to get the same amount of work done, because obviously they are working harder.

On the flip side, the places I've worked where there is paid overtime, you see people dragging their feet to get that time and a half--which they will get when the job has to get done. Then there are the places where people are required to work 60 hour weeks for months on end--and people wonder why there are mistakes and accidents happening.

No good answer. And the floggings will continue until morale improves.

 

Exactly Lucretia. If someone wants to game the "system" then no matter what you do it will be played.
I have found strong leadership and the power of example are the keys to managing employee's. A hefty does of respect for their lives has to be part of the equation in any event.

 

The bit about bonuses is the screwed bit. One can ha e a salary under the cap if bonuses count for less than 4% of the total of 47k or whatever but a lump sum back payment has to be oaid out if the bonuses aren't earned, ie not making sales or labor goals... but why try if you have to get paid the minimum?

I agree respect for personal life and bonuses where bonuses are do if available leads for a stronger team and relationship/respect for management and team members.

But how does this help economy? Won't this drive up prices on darn near everything? Especially if they push through raising minimum wage up to something stupid? To darn near what my good line guys are making now? Will I be able to give them a raise if minimum wage gets up there?

I do not want be an hourly manager. It sounds made up. Doesnt have the same ring to it. Don't want to be working for less an hour than some line cooks...

I don't want to have to reapply for my job when it goes hourly. And when I do I hope they keep the vacation time on with it. Etc etc etc.



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