Instapundit » Blog Archive » 1099 NATION: Obama extends overtime pay to 4.2 million Americans. The updated rule, which takes e…
More after the break!
"The updated rule, which takes effect Dec. 1 and doubles the salary threshold below which workers automatically qualify for time-and-a-half wages to $47,476 from $23,660 a year, or from $455 to $913 a week. Hourly workers are generally guaranteed overtime pay regardless of what they make.
“We’re strengthening our overtime pay rules to make sure millions of Americans’ hard work is rewarded,” President Obama said in a statement. “If you work more than 40 hours a week, you should get paid for it or get extra time off to spend with your family and loved ones.'"
"“What our members have told us, what many other employers have told us, is there’s not a golden pot of money out there sitting in employers’ pockets where they can all of a sudden pay a lot more overtime pay,” said David French, vice president of the National Retail Federation. “Instead, they’re going to make the rational change and they’re going to change jobs.'"
The Secretary of Idiotic Government Rules had this to say:
"Secretary Perez says employers have a variety of ways they can comply with the new rule when it takes effect Dec. 1. “People are going to get at least one of three benefits,” Perez said. “They’re either going to get more money … more time with their family, or everybody is going to get clarity.'"
Oh, I expect nearly all will get the latter, a butt load of clarity. Mostly, clarity that serious job changes are necessary and like Stephen Green infers, a shift to independent contractor status.
This like nearly all of the President Feckless ODither's employment related regulations are driving employers towards the gig economy. What that means here is the former employee will be paid approximately the same amount as before but sans benefits, and all of the good stuff the employer "pays." The scare quotes are because many of these things, like the employers portion of the Social Security payment are honestly just employee wage masquerading as something else.
The alternative is the employer is likely to simply require these employees to be more productive, meaning if this drives up this pool of employees total wage by 15%, then they will need to produce 15% more. In essence, as David French said, they're going to change the jobs, and the employees are unlikely to like the changes.
Progressives should not perform delicate economic policy maneuvers. They are simply incompetent at this function. They should stick to simple stuff, you know like fist fights at state party conventions, busting up Democrat party headquarters, death threats, and similar easy to pull off jobs.
'08 race worker held in damage to Colorado Democratic HQ
Clinton-Sanders Fight Turns Violent
Lawmaker’s son sentenced for slashing tires
See, those jobs are right up your alley!