President Obama Raises the Overtime Salary Threshold

Formaldehyde

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I doubt most McDonalds managers make anywhere near $50K either. That is why they should be paid overtime, just like the other employees who make wages close to minimum wage.
 

Birdjaguar

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Or watch as they find jobs elsewhere now that they can make far more money as truly exempt employees performing managerial tasks.
We have always encouraged all of our employees to seek out the best job they can. We think our training improves their marketability. Our turnover is pretty low though. When everyone else was cutting hours to avoid having to pay benefits, we eliminated our one PT position and made it full time. Everyone has access to benefits.

I expect that those who compete with us for employees will look for ways to preserve their current payroll % and find ways to sidestep changes. We'll look for a path that takes a broader look at roles and responsibilities and compensation so that it all stays in balance. Maybe we'll eliminate all three $36k jobs, create two $50k positions and add another lower level hourly slot. There are lots of ways to address this change that go beyond simply "paying OT".

Given that we are talking about $10,000 out of multimillion in profits, BJ's company can afford to pay for the flexibility it wants. Timeclock issues are a fairly small burden given that BJ's company, if operating legally, already has people on the clock.
ATM five of our 40 employees are exempt, so the time clock issue is not significant even though someone will have to do.

The profit issues are more complicated than I am will to discuss here and they don't just go into somebody's pocket. We could afford $10 or $20k in additional payroll, but that is money not spent elsewhere. Our goal is not to have the biggest payroll possible. Let me know when you are in the area and since you are a bigwig attorney, I'll take you to lunch at a fancier place that I take Forma. ;)
 

Zelig

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For non degreed positions in NM, $36K plus paid health care, plus, 401K match, plus 3-4 weeks paid vacation ($12k benefit package) is a pretty good job. The company cost for them is about $48K.

I don't buy salary*weeks for vacation costs to company, as worker productivity decreases with more hours worked, it's not clear that giving additional vacation time costs companies anything.
 

Formaldehyde

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In the last employee job I had, where every single person was exempt, my employer demanded that everybody work at least a half day on Saturday. If we had a deadline to meet, we were also expected to work as long as it took to meet it. Based on what he was paying me, I bet half the people who worked there made less than the new exempt employee minimum. Nobody had more than 2 weeks vacation.

What he offered to everybody, instead of competitive pay with the rest of the software industry, was a tiny equity share in the company that turned out to be completely worthless. It is the same scam that Microsoft used for years to defraud tens of thousands of their own employees by deliberately paying them less than the market value in absurd hopes the stock would continue to perform as it had in the past. There was even a 3 week period where he failed to make payroll.

This country needs far more laws protecting the employees. We are the only advanced country with hardly any at all.
 

Birdjaguar

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That is only because the minimum used to be so embarrassingly low. It had not been adjusted since 1975.
Welcome to capitalism. It is a far from perfecrt system.

It just seems to me that if you have responsibility enough to qualify as exempt, then something in the 30s is not well paid. They may be well paid for what they do, but if so, then they should probably already qualify for OT pay since something only 30 to 40k a year isn't all that important to a company with the revenue and profit that yours has. They are basically cogs or they would be paid more.
Employees are the single worst thing about running a company. They are all different; they each bring their own set of problems and drama to the workplace. they interact in strange ways and have their own skill sets and goals. They all handle responsibility differently. Probably 30% of my time gets spent working through personnel "stuff" both good and bad. 30 children is a lot even if you like them all.

For each manager we individualize supervision and duties. We are small enough to do that. We are also large enough to have the resources to support such efforts. My "right hand" and I are the HR staff. Setting standards for linking compensation, skill sets and duties is quite complicated. Doing certain things make one exempt, but that does not mean there is a set value for those duties that fits every business. Managing 5 employees who generate $10mm in revenue is not the same as supervising 5 employees who generate $250,000 in sales even if the selling situation is the same.
 

Zkribbler

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If my boss asks me to work overtime without compensation, I can just go to HR and report him. What protections do American walmart workers have for such things? Do they have a way to report any injustice without the fear of being fired?

I say "AMerican walmart workers" by the way while I realize that their Canadian equivalents likely have similar issues. It's just that we're talking about America in particular, so

Most states have a labor commission, with whom you'd file a complaint and who would decide your case. Maybe a decade ago, the California Labor Commission was so overworked, the legislature allowed cases to be filed in courts instead. We at Los Angeles Superior Court were soon swamped with failure-to-pay-overtime disputes. :crazyeye:
 

Formaldehyde

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Welcome to capitalism. It is a far from perfecrt system.
That is exactly why we need far more laws protecting the employees. So-called capitalism in the form it is practiced in the US only benefits the employers except in rare circumstances.
 

Birdjaguar

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In the last employee job I had, where every single person was exempt, my employer demanded that everybody work at least a half day on Saturday. If we had a deadline to meet, we were also expected to work as long as it took to meet it. Based on what he was paying me, I bet half the people who worked there made less than the new exempt employee minimum. Nobody had more than 2 weeks vacation.

What he offered to everybody, instead of competitive pay with the rest of the software industry, was a tiny equity share in the company that turned out to be completely worthless. There was even a 3 week period where he failed to make payroll.

This country needs far more laws protecting the employees. We are the only advanced country with hardly any at all.
There are lots of bad bosses out there. Even some crooks, and I agree that what you described is not good. Our goal is to be one of the good guys. Do our employees wish they made more? Yes.
 

Zkribbler

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I doubt most McDonalds managers make anywhere near $50K either. That is why they should be paid overtime, just like the other employees who make wages close to minimum wage.

According to GlassCeiling.com, the average base salary of a McDonald's manager is $43,222.
 

Birdjaguar

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According to GlassCeiling.com, the average base salary of a McDonald's manager is $43,222.
And unless you know what their duties are, it doesn't mean much.

That seems like an upper management mistake - why are you keeping on people that only generate $50k in sales (assuming selling is their primary duty)?
I don't and you are probably right. I was merely trying to illustrate the point that "supervising 5 employees" is a poor standard for setting a salary level.
 

JollyRoger

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I don't and you are probably right. I was merely trying to illustrate the point that "supervising 5 employees" is a poor standard for setting a salary level.

And if the supervision of 5 employees only justifies annual pay in the 30s or 40s, then it really isn't the kind of position that should be exempt from overtime.
 

Birdjaguar

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And if the supervision of 5 employees only justifies annual pay in the 30s or 40s, then it really isn't the kind of position that should be exempt from overtime.
Why? What justifies overtime?
 

FriendlyFire

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Is he now worth only half an Antichrist or did he bump up to 1.5 Antichrists?

Obama is 2 Hitlers, 1 Mao, 3 Stalin's, 1 Secret Muslim, Gets a big fat fail 0 Antichrist and from me 1/4 of a Lincoln.
Destroying American form within is taking forever.
 

Formaldehyde

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According to GlassCeiling.com, the average base salary of a McDonald's manager is $43,222.
That is far more than I thought it would be. But it is still a long way from the new minimum. I wonder what McDonalds franchise owners, who are frequently multi-millionaires, will do.
 

Formaldehyde

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I am reminded of the time my boss tried to page me while I was at lunch.

The pager, which I kept in my locked briefcase, went off in the office. And there was no way for them to turn it off.

When I came back from lunch, I found it was at the bottom of the coat closet with a bunch of coats on top. And it was still merrily beeping away.

He didn't try to page me at lunch after that...
 

Commodore

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Looks like checking your email after work at home will know count towards overtime.

http://www.npr.org/sections/alltech...e-rules-more-employers-might-set-email-curfew

As it should. We, as a society, need to drill it into employers' heads that their employees are not available to them 24/7. In the spirit of that, I believe employers should have to compensate employees if they even attempt to contact them outside of their work hours, even if the employee doesn't answer the phone or check the email.
 
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