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Millions more workers would be eligible for overtime pay under new federal rule

Southern Dad

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One of the things that I enjoyed myself when I was a district manager starting out in the newspaper business was the flexibility offered by my salaried exempt position. Were there weeks that I worked more than forty hours? You bet there were. When I took over my district, I worked in excess of sixty hours a week to get it straightened out but once it was under control? There were many weeks that I took Friday off or only worked a few hours a night. My job was to get all the routes out. The paper didn't care how long that took me to accomplish. It was nice having a consistent salary.

Now, that flexibility will be gone for many entry level and midlevel managers. President Obama's Administration is going to put out a new policy raising the threshold for salaried exempt positions to $47,476 a year which is more than double the current $23,660. It sounds like a good thing, right? I don't think all the managers that will be moving to hourly wages and scheduling will think it is. Many businesses have slow times of the year. This has always been a plus for the salaried exempt entry level managers that they weren't impacted financially by the slow times. That is about to change.

This week, one of the managers at one of our properties took off four days this week to attend her son's graduation. She worked about 15 hours this week. Imagine what a hit that would be? She worked extra last week and plans to next week with her director's approval. They won't have the flexibility soon. Thanks Obama. Let's be honest, this Administration and the left will do anything it can to screw over businesses (job creators).

The Obama administration will unveil a new rule Wednesday that would make millions of middle-income workers eligible for overtime pay, a move that delivers a long-sought victory for labor groups.

The regulations, which were last updated more than a decade ago, would let full-time salaried employees earn overtime if they make up to $47,476 a year, more than double the current threshold of $23,660 a year. The Labor Department estimates that the rule would boost the pockets of 4.2 million additional workers.

The move caps a long-running effort by the Obama administration to aid low- and middle-income workers whose paychecks have not budged much in the last few decades, even as the top earners in America have seen their compensation soar. The last update to the rules came in 2004, and Wednesday’s announcement is the third update to the salary threshold for overtime regulations in 40 years.

https://www.washingtonpost.com/news...ible-for-overtime-pay-under-new-federal-rule/
 

Kal'Stang

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Re: Will this end salaried entry level management positions?

You know, this kind of stuff probably wouldn't even be necessary if companies willingly kept wages up with inflation instead of never raising the wages unless forced to by the government.
 

Hawkeye10

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Re: Will this end salaried entry level management positions?

I know this guy who used to manage a KFC. If he kept labor in line he got a fat bonus at the end of the year, if he did not he would be fired more than likely. The only way to meet the targets was for him to work 70-80 hours a week so that paid labor was not used. Likely he also fudged his workers hours some, did not pay them for all the time worked, calling some of it "side work" or " getting ready to work" or some such.

He ended up making about min wage per hour.

This was exploitation, eventually his wife said "No more".

Good on Obama for doing something, this exploitation had long been tolerated.
 

Southern Dad

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Re: Will this end salaried entry level management positions?

You know, this kind of stuff probably wouldn't even be necessary if companies willingly kept wages up with inflation instead of never raising the wages unless forced to by the government.

While that my be true, there are many businesses that are fighting just to stay in business. But you are right, those businesses that aren't the profitable should close. They should just layoff all their employees and liquidate the assets so the owners can enjoy retirement rather than worrying about cutting this expense or trying to find additional revenues.
 

Southern Dad

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Re: Will this end salaried entry level management positions?

I know this guy who used to manage a KFC. If he kept labor in line he got a fat bonus at the end of the year, if he did not he would be fired more than likely. The only way to meet the targets was for him to work 70-80 hours a week so that paid labor was not used. Likely he also fudged his workers hours some, did not pay them for all the time worked, calling some of it "side work" or " getting ready to work" or some such.

He ended up making about min wage per hour.

This was exploitation, eventually his wife said "No more".

Good on Obama for doing something, this exploitation had long been tolerated.

I'm sure that all the salaried managers going to hourly wages over the next few months won't be real happy about it. In newspaper management, I suspect that district managers may even become contractor positions.
 

Kal'Stang

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Re: Will this end salaried entry level management positions?

While that my be true, there are many businesses that are fighting just to stay in business. But you are right, those businesses that aren't the profitable should close. They should just layoff all their employees and liquidate the assets so the owners can enjoy retirement rather than worrying about cutting this expense or trying to find additional revenues.

:shrug: Succeeding in the business world is hard. It's better that they close up shop if they can't compete in order to let more new business ventures that can succeed into the market. I prefer short term losses for long term gains over short term gains for long term losses as it makes the economy healthier over all.
 

Hawkeye10

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Re: Will this end salaried entry level management positions?

I'm sure that all the salaried managers going to hourly wages over the next few months won't be real happy about it. In newspaper management, I suspect that district managers may even become contractor positions.

I look for black market to grow rapidly. I paid people under the table to avoid overtime, because of taxes it was in everyone's advantage to cut the government out of the deal, so the employees agreed....they wanted to business to live.
 

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Re: Will this end salaried entry level management positions?

unpaid overtime=scam. nothing 'left wing' about expecting a fair days pay for a fair days work.
 

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Re: Will this end salaried entry level management positions?

I look for black market to grow rapidly. I paid people under the table to avoid overtime, because of taxes it was in everyone's advantage to cut the government out of the deal, so the employees agreed....they wanted to business to live.

that's unfortunate, but i can understand why you and others would do it, regulation is stifling our ability to compete.
 

Kal'Stang

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Re: Will this end salaried entry level management positions?

I look for black market to grow rapidly. I paid people under the table to avoid overtime, because of taxes it was in everyone's advantage to cut the government out of the deal, so the employees agreed....they wanted to business to live.

And if you get caught doing this not only will you be out of a business but you and your employee's will be getting stuck talking to the IRS and being audited. Possibly even jail time. And all it takes to get caught is one disgruntled employee or even one disgruntled person that applied for the job and didn't get it because they thought you were being unfair.
 

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Re: Will this end salaried entry level management positions?

:shrug: Succeeding in the business world is hard. It's better that they close up shop if they can't compete in order to let more new business ventures that can succeed into the market. I prefer short term losses for long term gains over short term gains for long term losses as it makes the economy healthier over all.

You are absolutely right. Close up the small businesses and those in evolving industries like newspapers. Shut them down. Of course, that means that you have to tell all those people working there that they got a raise but now they are unemployed. Yes, you hit the nail right on the head. Close them down.
 

Southern Dad

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Re: Will this end salaried entry level management positions?

I look for black market to grow rapidly. I paid people under the table to avoid overtime, because of taxes it was in everyone's advantage to cut the government out of the deal, so the employees agreed....they wanted to business to live.

I won't pay under the table because it is not legal. I have always taken pride in keeping it legal. All of our employees and even our contractors clear e-Verify and receive W-2's or 1099's. But what I do see is a reevaluation of each position. Then converting some to hourly and outsourcing others.
 

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Re: Will this end salaried entry level management positions?

unpaid overtime=scam. nothing 'left wing' about expecting a fair days pay for a fair days work.

If you think these people are going to see increased wages, you are sadly mistaken. That isn't what is going to happen. They will be on a clock. That's right hourly. Then when the business needs to cut for the lean season, they will be at 35 hours per week or less.
 

SouthernDemocrat

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One of the things that I enjoyed myself when I was a district manager starting out in the newspaper business was the flexibility offered by my salaried exempt position. Were there weeks that I worked more than forty hours? You bet there were. When I took over my district, I worked in excess of sixty hours a week to get it straightened out but once it was under control? There were many weeks that I took Friday off or only worked a few hours a night. My job was to get all the routes out. The paper didn't care how long that took me to accomplish. It was nice having a consistent salary.

Now, that flexibility will be gone for many entry level and midlevel managers. President Obama's Administration is going to put out a new policy raising the threshold for salaried exempt positions to $47,476 a year which is more than double the current $23,660. It sounds like a good thing, right? I don't think all the managers that will be moving to hourly wages and scheduling will think it is. Many businesses have slow times of the year. This has always been a plus for the salaried exempt entry level managers that they weren't impacted financially by the slow times. That is about to change.

This week, one of the managers at one of our properties took off four days this week to attend her son's graduation. She worked about 15 hours this week. Imagine what a hit that would be? She worked extra last week and plans to next week with her director's approval. They won't have the flexibility soon. Thanks Obama. Let's be honest, this Administration and the left will do anything it can to screw over businesses (job creators).


Good God, talk about bitching if you was hung with a new rope. If you earn 23k a year and are salaried, and if you ever work an hour more than 40 hours in a week, then your employer is getting over on you. The fact that the government was allowing anyone earning 23k a year to work an unlimited number of hours without ever being paid a cent in overtime is practically criminal.

For crying out loud they are moving it up 47k a year. That is not much money. It is less then the median income. I am salaried, and frankly I make a good bit more a year than 47k. However, as someone that is salaried (and works in IT), I usually work more than 40 hours a week. Often a lot more than 40 hours a week. That is fine because I am paid well, and it goes along with the job. I also have some flexibility that goes along with it and if I need to leave early to go to one of my kids games or events, I do. That is not the point of being salaried though. Historically salaried positions were more professional and hourly positions were for labor, trades, and contractors. What some companies have done over the last 25 years or so is move some positions that historically had always been hourly positions and move them to salary so they can extract a lot more than 40 hours a week out of them on average without paying them overtime. If you are making say 30k a year salaried and your employer works you 50 or more hours a week on average - but you get some flexibility - your employer is still getting over on you. The fact that anyone would bitch about the administration doing something about those labor abusive practices just goes to show you how blinded by partisanship some people can be.

Finally, a decent employer has a program for their employees, salaried or not, to take time off for family events and so on. Its called personal days and vacation days. I have been at my current employer for 12 years and have 23 days of vacation and personal days a year now. Of course being taken care of by my employer is why I have worked for them so long and work as hard as I can for them.
 
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Good God, talk about bitching if you was hung with a new rope. If you earn 23k a year and are salaried, and if you ever work an hour more than 40 hours in a week, then your employer is getting over on you. The fact that the government was allowing anyone earning 23k a year to work an unlimited number of hours without ever being paid a cent in overtime is practically criminal.

I dunno. I kinda think that the idea that the government is what "allows" us or "doesn't allow us" to make our own preferred work arrangements is what's criminal. They work for us, not the other way around. They aren't our boss.
 

cpwill

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Re: Will this end salaried entry level management positions?

:shrug: Succeeding in the business world is hard. It's better that they close up shop if they can't compete in order to let more new business ventures that can succeed into the market. I prefer short term losses for long term gains over short term gains for long term losses as it makes the economy healthier over all.

Far better that people be unemployed than work for pay that they may be willing to, but which I wouldn't want to. Out on the street with them.
 

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I dunno. I kinda think that the idea that the government is what "allows" us or "doesn't allow us" to make our own preferred work arrangements is what's criminal. They work for us, not the other way around. They aren't our boss.

Sure, lets bring back sweatshops, child labor, do away with laws preventing pay discrimination to minorities and so on. Freedom yeah!!!
 

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I dunno. I kinda think that the idea that the government is what "allows" us or "doesn't allow us" to make our own preferred work arrangements is what's criminal. They work for us, not the other way around. They aren't our boss.

Go back to the early 1900s and share lecturing the people working in the factories with little to no regulations about how they Should stop bitching and get over it.
 

cpwill

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Sure, lets bring back sweatshops, child labor, do away with laws preventing pay discrimination to minorities and so on. Freedom yeah!!!

Oh hey, look!


strawman.jpg


A Strawman!




When you reduce the ability of employers and employees to come to mutually beneficial terms, you reduce the incidence of it occurring. Why this is beyond the ken of so many, I really don't understand. It's like we want to deny math as soon as it applies to us.
 

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Sure, lets bring back sweatshops, child labor, do away with laws preventing pay discrimination to minorities and so on. Freedom yeah!!!

It's a silly argument. An argument used by people who truly believe that markets are perfect and the world would be literally perfect if all interference was removed. "Equilibrium and all that.."
 

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Oh hey, look!


View attachment 67201513


A Strawman!
So what else are you arguing will? You oppose Something for workers who work more then 40 hours a week because.. It'll lead to unemployed people ZZZZZ.. It's always the same damn argument whenever something to benefit labor is considered. It's always been the damn argument. In reality, employment numbers swing all the time, and if you really want people to lose their jobs, cut government spending.
 

ttwtt78640

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There is an important difference between being paid $31,200/year and being paid $15/hour - the latter requires punching a clock or at least filling out a time card. While that hourly (non-exempt?) employee would make more during any week that they exceeded reportiing 40 hours on the job (at the hob site?) they would also get paid less during any week that they did not.

The best thing about having a salaried (exempt) position is that, rain or shine, you can count on getting a consistant amount in your paycheck. Getting a bigger paycheck (as an hourly or non-exempt worker) during the busiest weeks may or may not offset getting a smaller paycheck during the slower weeks - the law change appears to make that, exempt vs. non-exempt employee status, no longer an option.
 
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tres borrachos

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Sure, lets bring back sweatshops, child labor, do away with laws preventing pay discrimination to minorities and so on. Freedom yeah!!!

Come on, SD. That's a little dramatic. We're talking about adults, exempt employees, making a decent salary in most parts of this country. Nobody is talking about discrimination and child labor and sweatshops.
 

tres borrachos

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There is an important difference between being paid $31,200/year and being paid $15/hour - the latter requires punching a clock or at least filling out a time card. While that hourly (non-exempt?) employee would make more during any week that they exceeded reportiing 40 hours on the job (at the hob site?) they would also get paid less during any week that they did not.

The best thing about having a salaried (exempt) position is that, rain or shine, you can count on getting a consistant amount in your paycheck. Getting a bigger paycheck (as an hourly or non-exempt worker) during the busiest weeks may or may not offset getting a smaller paycheck during the slower weeks - the law change appears to make that, exempt vs. non-exempt employee status, no longer an option.

Exempt employees can take 3 hours off to go to a doctor, or leave work 2 hours early to go to their kid's dance recital, without seeing a change in their paychecks. Hourly employees get docked pay for that time. As someone who has been an exempt employee for the better part of 30 years, I would much rather have that benefit and know on occasion I will have to work "overtime" (which I've had to do thousands of hours in my career) than have to manage every minute of my day against an hourly wage.
 

ttwtt78640

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Exempt employees can take 3 hours off to go to a doctor, or leave work 2 hours early to go to their kid's dance recital, without seeing a change in their paychecks. Hourly employees get docked pay for that time. As someone who has been an exempt employee for the better part of 30 years, I would much rather have that benefit and know on occasion I will have to work "overtime" (which I've had to do thousands of hours in my career) than have to manage every minute of my day against an hourly wage.

The same is true of a manager (foreman?) of a framing crew - it is nice to know that you will get a full paycheck (vs. 2 hours of "show-up" time per day) during a wetter than usual week.
 
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