Thursday, May 19, 2016

1099 NATION: Obama extends overtime pay to 4.2 million Americans.

CBS News:
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.”
But the NPR writeup adds this:
“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.”
Dropping full-time workers with their costly benefits and overtime requirements, then hiring new workers as 1099 employees, means never having to say you’re sorry for supporting Obama.
And one more thing:
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.”


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