Both sides of overtime coin.
For example, there’s this article I read yesterday on WashingtonPost.com supporting the DOL proposal. The authors suggest that, while the new changes in the overtime rules may result in less overtime worked and may not spike the earnings of the current workforce, the new rules may create over 100,000 new straight-time (hourly) jobs.
Chris Opfer, writing for Bloomberg Law (here), reports that during panel discussions yesterday with Hill staffers, advocates for the new overtime rules noted that companies risk cratering employee morale and decreased employee productivity if they try to convert salaried employees to hourly workers, and drop the hourly rate to offset the effect of paying overtime to previously exempt employees.
Another report from the National Retail Federation suggests that the new overtime rules will end up costing employers billions. I may not be the smartest employment-lawyer blogger in the world —
yes I am — but I know that when employee overhead rises, business will need to compensate in other ways, such as with fewer new hires, or layoffs, or business closures.
If you feel strongly about the new proposed overtime rules, we are in the midst of a 60-day comment period before the proposal is finalized. If you want to comment, you can do so here. If you operate a business and you need some help with talking points, SHRM has your back here.
I’d also like to hear from you in the comments down below.
The final rule won’t go into effect until sometime in 2016. But, when it does, I can’t imagine any other change in the law having a greater impact on your workplace.