MADISON, Wis. – This evening, the United States District Court for the Eastern District of Texas issued a nationwide preliminary injunction in the Department of Labor Overtime Rule case, enjoining the enforcement of the rule. In September, Wisconsin Attorney General Brad Schimel joined a bipartisan coalition of 21 states in asking the Court to prevent implementation of the Rule on December 1, 2016.
“I’m incredibly happy the Court agreed the rule should be put on hold,” said Attorney General Schimel. “There’s no greater honor than representing millions of Wisconsinites in the continuous fight for the return of power to our citizens, away from an out-of-control federal bureaucracy in Washington D.C. Wisconsin must have the ability to set its own priorities and policies.”
The new Rule doubles the salary-level threshold for employees to be exempt from overtime, regardless of whether they perform executive, administrative, or professional duties. Beginning December 1, 2016, all employees would be entitled to overtime if they earn less than $47,476 a year, including state and local government employees. Additionally, the new rule contains a ratcheting mechanism to automatically increase the salary-level threshold every three years without going through the standard rule-making process required by federal law.
I have always puzzled over why the hard right is opposed to paying employees for time worked. One would think this would be just another cog in the trickle-down theory. A couple more $$ in the hands of the $50K/year employee will create more demand, hence a good thing for retailer, distributor, and manufacturer.
Typical liberal reaction.
Ignore the price increases, layoffs and small business owners that just say “screw it” and throw in towel.
I chat with hundreds of small business owners across the nation and all of them are considering one or more of those options to cope.
In states faced with huge minimum wage increases as well, some are considering the “screw it” option.
Liberals celebrating the inflicting of huge pain on hard working small business owner….typical hateful liberalism.
And typical of you as well.
So explain how it is bad for John Doe, who now gets some overtime and has some discretionary spending money, now can take his kids to your DQ on a regular basis? Or buy a new car at the local Ford dealer, or hire a local contractor to do some home improvements that he had been putting off?
As typical of you and yours, your short-sightedness and lack of a big-picture view has made your response so predictable.
Nord,
It can be horrendous for employee if cost of employment is arbitrarily raised.
In case of my business, it may be more efficient to buy pre-manufactured dilly bars, made by machine, rather than making them in store, as one example. I know that will happen if I see minimum wage go to $15/hour. At least 5 employees, just on that issue alone, will lose their jobs to the manufacturing machine.
Hours will be cut back in other cases. Open hours may be possibly be cut back in slower times, adversly affecting consumers who may patronize the slower hours.
Some small business owners who run on close margins, may fire all those employees all together and be forced to work it soley themselves to make any money at it.
Business owners are not charity. They need a to make a profit to survive. You cannot foist these kinds of changes on them without advesely forcing them into actions, some of which may be destructive to the employee even having a job!
I calculated the possible effect of a $15 minimum wage on my business. A minimum of 1/3 of my staff (10 employees) would be instantaneously fired…they just are not worth close to anything like $15/hour because of work ethic, or lack threof. I’d have to raise prices 18-25% minimum. I’d have to make an undetermined amount of techological investment to take away processes I had employes do previously, including making cakes and dilly bars in store. Also, the complete schedule flexibility i allow for family issues, social plans, etc would be out the window toward a rigid, no room for error, FIXED schedule approach…an approach most remaining employees would detest, but the $15/hour wage would not allow for “relief” employees on staff for those events like we have now.
Just scratching the surface of how this would hurt the employees you claim to help. I’m just getting started on the effects. Many restaurants would simpy cut back staff and customers will experience longer wait times, slower service. Self serve ordering lobby kiosks would appear overnight in lobbys and drive thrus. Automated kitchens are being worked on by several QSR concepts….they are being accelerated because Colorado and other states are cranking wages now. I know DQ operators ready to make heavy invstment in these areas in those states to cut back staff at high minimum rates. They are already doing some of what I describe above….so are other QSR concepts in those states.
Why stop at $15/hour? Why not $100/hour?
At $100/hour minimum, it would be me, my wife, maybe my sister in law, and 1 or 2 great employees as my entire staff. Total staff of 5, tops. (I have just over 30 employees now) Expect to wait on super busy busy summer ice cream nights on that scenario. Under my current daily labor spend in dollars, I could only afford to schedule 6 hours of labor a day at $100 an hour, maybe 7 hours if we are very busy. Being open 12 hours a day….I hope you see the difficulty, both for employee and business owner.
“I have always puzzled over why the hard right is opposed to paying employees for time worked.”
I am not. That’s an incorrect supposition on your part. I am opposed to the government inserting itself into the employer/employee relationship. Free people should be able to sell their labor, or not, for what they think it is worth to people willing to pay for it. A free market is the most efficient and most fair way to allocate resources, including labor, in a market that is constantly changing.
Kevin:
This article and post was about the overtime proposal. Do you want an opportunity to regroup?
I grew up in a small town in northern WI where my parents owned an independent retail business. They always felt that if the others in town made a little more they might spend it in our store. It is interesting that you feel that the less money folks have for discretionary spending the better off your business will be. Maybe franchise business are operated differently than a true independent business.
Nord,
The overtime rule is a form of minimum wage.
I don’t need to regroup, I made an eloquent case you will hurt many you claim to help.
The fact in all this, many are not worth higher minimum, whether by minimum wage or overtime rule. Automation makes more sense when labor cost is made higherby law.
Poor try at rationalizing your deviation from the topic. You really need to look up the definition of “eloquent”.
And thanks for reinforcing my original thesis, that those on the hard right are opposed to paying for work performed. Just look at our president-elect and his history of stiffing employees and contractors. What happened to the “a rising tide lifts all ships” attitude in the US ??
Nord,
What many small business owners will do on overtime rule….hire more part time people to avoid overtime to the new expanded group.
This may result in less pay for existing employees.
You make it sound like people are trapped into being an employee. Being an employee is least risky thing to do in our economy. Anyone, with proper motivation and dedication can become a business owner. They may have years with little or no pay until business is mildly profitable. Many do not want to make that investment. So they choose the safe route…being an employee.
If employee does not like what they do, or how they get paid, and wants to “call the shots”, buy the business.
Simple as that.
Thanks to Obama, it’s harder to get home loans than SBA loans these days….
“Thanks to Obama, it’s harder to get home loans than SBA loans these days….”
Maybe with your credit rating, but anyone with good credit can get a loan. You really struggle with the truth, don’t you.
The rest of the comment you made is just excuses for not wanting to sound cheap. Merry Holidays, Scrooge.
Nord,
Shows what you know. I have a good credit rating. I qualify for SBA loan. (You have to have god credit to qualify for SBA)
However, I do not qualify for HELOC because of depreciation on my tax return, despite substantial home equity….thans to Obama regulation under dodd-Frank.
If you would consider looking beyond your liberal prism, you may understand the oppressive regulatory issue.
I do know that home loans to employed folks with a good credit rating are obtainable up here. Maybe you have been red-lined in Kewaskum?
Nord,
Just red lined for using accelerated depreciation rules on tax return under Dodd-Frank.
It needs to be repealed.