Seriously, Forbes? This attitude is part of the problem, not the solution.
Seriously, Forbes? This attitude is part of the problem, not the solution.
Originally shared by Sarah Rios
OVERTIME
Dear Forbes,
Do you want low employee moral? Because this is how you get low employee moral.
There is an easy solution for companies that want to maintain the flexibility of the old rules without boosting pay up to the new threshold: Take your formerly salaried employees and pay them a lower wage, but guarantee pay for more than 40 hours, even if they actually work less. Paying workers for hours not worked is perfectly fine; it’s the other way around that gets an employer in trouble.
Here’s how the arithmetic works. Suppose you have a salaried employee earning $24,000 a year. The new deal is to pay the federal minimum wage of $7.25 an hour, and pay for a guaranteed 56 hours a week. For 2,080 hours a year (40 hours times 52 weeks), the straight time pay is $15,080. The additional hours (16 hours times 52 weeks) are paid at time-and-a-half, for $9,048. The employee earns $24,128 a year, about the same as before the change. The employer has the flexibility to ask the employee to work more than 40 hours a week. So long as the employee actually works no more than 56 hours in a week, the company has no budget risk.
Seriously?
If you don't have room in the budget to pay even small amounts of overtime, and you find yourself wondering if the above calculations will save you money while still getting extra work out of your employees, I have some solutions for you.
1) Don't be a dick.
2) Perhaps take a look at your scheduling and/or budget and see if either needs adjusting. Hint: they do.
3) Consider hiring additional staff during busy times. This may require you to revisit step 2.
“No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” - FDR (1933, Statement on National Industrial Recovery Act)
http://www.forbes.com/sites/billconerly/2016/05/23/easy-solution-for-new-overtime-pay-rule/#2556d94f1fa5
Originally shared by Sarah Rios
OVERTIME
Dear Forbes,
Do you want low employee moral? Because this is how you get low employee moral.
There is an easy solution for companies that want to maintain the flexibility of the old rules without boosting pay up to the new threshold: Take your formerly salaried employees and pay them a lower wage, but guarantee pay for more than 40 hours, even if they actually work less. Paying workers for hours not worked is perfectly fine; it’s the other way around that gets an employer in trouble.
Here’s how the arithmetic works. Suppose you have a salaried employee earning $24,000 a year. The new deal is to pay the federal minimum wage of $7.25 an hour, and pay for a guaranteed 56 hours a week. For 2,080 hours a year (40 hours times 52 weeks), the straight time pay is $15,080. The additional hours (16 hours times 52 weeks) are paid at time-and-a-half, for $9,048. The employee earns $24,128 a year, about the same as before the change. The employer has the flexibility to ask the employee to work more than 40 hours a week. So long as the employee actually works no more than 56 hours in a week, the company has no budget risk.
Seriously?
If you don't have room in the budget to pay even small amounts of overtime, and you find yourself wondering if the above calculations will save you money while still getting extra work out of your employees, I have some solutions for you.
1) Don't be a dick.
2) Perhaps take a look at your scheduling and/or budget and see if either needs adjusting. Hint: they do.
3) Consider hiring additional staff during busy times. This may require you to revisit step 2.
“No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” - FDR (1933, Statement on National Industrial Recovery Act)
http://www.forbes.com/sites/billconerly/2016/05/23/easy-solution-for-new-overtime-pay-rule/#2556d94f1fa5
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