New Overtime Rule Causes Triple Damage to Economy

e21 ^ | May 18, 2016 | Diana Furchtgott-Roth

[expat_panama]

These new overtime labor costs are on top of existing costs. 

Anyone who's ever managed a payroll knows that overtime not only costs more per hour, but it's bad for morale, it also means lower productivity, and is a temporary measure at best.   Thing is that sometimes you just got to do it --deadline, penalties, weather, whatever.  Just the same, the rule of thumb is that employee output's just say, 60% after 8 hours and even that only lasts about 3 weeks before everyone's brain's gone out the window.  Of course, I'm talking 14 or 16 hour days/seven days per week but this is the kind of extreme situation we're dealing with.

Now we're piling more gov't interferance on top of it all.

[goodwithagun]

This makes me think of the Geico commercial with the little old ladies who think they know how to use social media. “That’s not how this works! That’s not how any of this works!”

[SoFloFreeper]

Megan, another perspective to consider. :)

[Biggirl]

Look for Trump to get rid of this EO.

[from occupied ga]

but that the United States undervalues science research

This gem caught my eye. Science research is valued EXACTLY as it should be. In a free market demand and supply set prices, and the demand/supply of scientists is at the level where their pay is what it should be.

[Buckeye McFrog]

Donning Asbestos Suit:

When I was young I spent some time in management in the retail industry. They would routinely work you 60 hours/week on salary, often running around doing mundane jobs that had nothing to do with managing anybody. The weeks got a lot longer at Christmastime. Break it down per hour and you were making less than the minimum wage.

I got smart and left that business when I realized that the impending birth of a child would qualify me for food stamps. But my former employers played WAY too fast and loose with the rules. As one of my former colleagues in that business was fond of saying “you gotta draw the line SOMEWHERE.”

[precisionshootist]

NEW RULE?

When did we become a nation of "rules"?

How can the labor department make rules that have the force of law?

Employers with the help of State Governors need to tell the labor dept to fuck off until congress votes and this is signed into law.

If I'm reading this correctly this is no little thing. This is going to have MAJOR impact on peoples lives.

[RoosterRedux]

Companies will circumvent these rules by outsourcing more work to subcontractors.

I often work as a subcontractor and get paid for the work completed regardless of the hours it took to get the job done.

On some projects, I make less than minimum wage (I make it up on other projects).

I prefer working this way.

[Buckeye McFrog]

The rule has been in existence for about half a century.
Obama just moved the threshold for being considered exempt from $22K up to $47K.

[ChildOfThe60s]

This begs the question I have asked many times since Herr leader took office.

Why doesn’t he just dissolve congress like happens in 3rd world dictatorships? Clearly, no legislative action is necessary to make law in the US. That is why we have the executive branch, regulatory agencies, and a royal judiciary.

[expat_panama]

 

 

Good morning!  Stocks (left) flat/up in mixed volume.  Gold &silver going nowhere (beats going broke). Futures looking grim all around...

Reports:

8:30 AM Initial Claims
8:30 AM Continuing Claims
8:30 AM Philadelphia Fed
10:00 AM Leading Indicators
10:30 AM Natural Gas Inventories
 

Meanwhile we got all the news fit to line the birdcage:

Hillary Loves The '90s, But Can't Bring Them Back - Jim Pethokoukis, TW
Good Thing Investors Don't Believe Mr. Trump - Andrew Stuttaford, TWS
The Harsh Reality of Regulating Overtime Pay - Andy Puzder, Forbes
New Obama Regulations Will Make Overtime Fair Again - Editorial, NYT
5 Quick Takeaways From the Fed Minutes - Mohamed El-Erian, Bloomberg
Why London Could Decide Whether the Fed Hikes - Patti Domm, CNBC
Fed Keeps Investors Guessing On Rate Hike - John Crudele, New York Post
Is Bond Selloff a 'Taper Tantrum' Repeat? - Ellie Ismailidou, MarketWatch
Looking Into Future of Fossil-Fuel Divestment - Chloe Maxmin, The Nation
In Venezuela, Socialism Is Actually Killing the People - Jose Cardenas, NR

[Fai Mao]

“When I was young I spent some time in management in the retail industry. They would routinely work you 60 hours/week on salary”

The same thing happened to me when I worked in Hotels as a Front Desk manager. Not only would the manager give me piles of work beyond my job description but I was at the mercy of the regular desk clerks. If Belinda the single mothers 4th baby was sick guess who got to work her shift? When John the doper was arrested for DUI who had to work the shift? The minimum wage clerks had more freedom than I did

[Stosh]

The article mentions the effect of this mandate on NIH and post-doctoral research associates.

At most research institutions, post-docs in the sciences work random hours, like graduate students - work weeks much longer that 40 hours are not unusual, but nobody keeps count, because you do what you’ve got to do to complete whatever project you’re on. It will be amusing to see how research groups deal with this decree - are they going to install time clocks for Ph.D.’s to punch in every time they come into lab? Or will they keep daily records of their time at the bench? Any way you cut it, it will be an accounting nightmare for academic scientific research groups across the country.

[ProtectOurFreedom]

It seems you are not feeling the Bern. If the government in all its wisdom says all scientists are worth $1 million per year, then that is their worth. I think it will be written into Bernie’s first Five Year Plan.

You and your antiquated notions about the invisible hand...bah!

[TomGuy]

One employer interviewed on a local radio news program was asked how it would impact him. He responded, ‘probably by reducing employee hours.’

[Who doesn’t see that coming? Oh, yeah, Liberals.]

[jalisco555]

My son is in precisely this position. His employer told him and his fellows that their hours will be reduced to avoid paying overtime.

[Chewbarkah]

Among a LOT of other unpaid work for a charity, I do payroll for 16 paid employees. Obama’s latest diktat, and another hundred miles of red tape discouraging employment, steal my time, using the charitable mission as a hostage.

Obama just increased the already massive pressure on private business to get rid of employees. Besides that, I can see two purposes behind this “overtime” rule: to increase violations the feds can use to shake down employers; and, to drive another wedge between labor and management by destroying the “management mentality” of salaried employees. FUBO!

[MisterArtery]

My wife has a white collar position and makes less than 47K. She works a lot of extra hours (at no compensation) at month-end closing. If this ozero edict is allowed to stand, she’ll have to punch a time clock and will be sorely pissed. She’d rather have the freedom to come and go.

[PJammers]

Was in the same situation. Worked in retail management on the logistics side. They would save on payroll by sending hourly home and making all the managers throw freight. You stayed until you were finished. Sometimes this took 18 hours.

During holiday season it was not uncommon to work 70-80 hours in 4 days, then you had mandatory volunteer time.

When you added up the hours, you actually made less per hour than the hourlys. I got sick and they fired me. Best thing that ever happened.

[Red Badger]

It’s amazing that people who have NEVER EVER RUN A BUSINESS IN THEIR ENTIRE LIVES THINK THAT THEY CAN TELL THOSE WHO DO AND HAVE FOR DECADES HOW TO RUN THEIR BUSINESSES........................