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#509813
The U.S Labor Department (USDOL) has finally released the anxiously awaited revised regulations affecting certain kinds of employees who may be treated as exempt from the federal Fair Labor Standards Act's (FLSA) overtime and minimum-wage requirements. These will be published officially on May 23, 2016.

If you currently consider any of your employees to be exempt “white collar” employees, you might have to make some sweeping changes.
Full explanation

An easier to understand version from Gawker

Essentially, if you're a salaried employee making less than $47k, your employer will be required to pay you overtime starting December 1.

Thoughts?
#509820
I think teachers are exempt, as are doctors and lawyers. I'm pretty sure pastors are not and I haven't read anything about pilots.

The question I have that I can't seem to find the answer to is if this is strictly salary or if businesses can include the entire benefits package in this. Also - how do housing allowances play into it (for pastors, etc)?
#509821
Jonathan Carone wrote:I think teachers are exempt, as are doctors and lawyers. I'm pretty sure pastors are not and I haven't read anything about pilots.

The question I have that I can't seem to find the answer to is if this is strictly salary or if businesses can include the entire benefits package in this. Also - how do housing allowances play into it (for pastors, etc)?
I didn't read the article (I've been studying) but thought I heard something about a 50k salary limit that did not include benefits So if you make 65 the overtime rules don't apply
IMO it is unnecessary Go to the tech sector. Look at how companies like Atari Microsoft Apple etc were built. Not by sweat shops but by people who loved doing what they were doing. They were groups of people who slept at the office worked all night and binged on pizza pop and the occasional line or two of Coke! America did not become America working 9-5
#509822
its going to affect a lot of athletic departments as well. Smaller/ Mid majors will now have a lot of big decisions on staffing and pay increases. I know this seriously affects my field. I am all for it since I know most Certified EM.,C's don't make above that threshold even at some of the p5 schools. its going to hurt Louisiana schools not named LSU.
#509825
To me, this is another example of people in government having no idea how most people's work lives operate. Employment is not cut & dry, and every company/industry/function/etc operates completely different. And honestly, I don't even know how this is enforceable in many instances. More regulation for a non-existent problem.
#509826
ALUmnus wrote:To me, this is another example of people in government having no idea how most people's work lives operate. Employment is not cut & dry, and every company/industry/function/etc operates completely different. And honestly, I don't even know how this is enforceable in many instances. More regulation for a non-existent problem.
Well there is a huge problem actually. Wages in this country have been stagnant for far too long. This is how the government of a controlled economy would react to underlying issues in the system. Controlled economies and the policies that go along with them always fail. In the end, the government (planners) in a controlled economy always end up being the catalyst for the failure, and the same is proving true once again. You can't create a robust economy with a growing labor market by demanding it. Obamacare, Minimum Wage hikes, Dodd-Frank, Illegal Immigration, and now this only make the problems worse and not better.
#509830
I think overwhelmingly this is going to have negative results. You'll see businesses lay people in the $20-30k range off and push the $35-40k worker over the $47k threshold and expect more hours out of them. The second worker gets a raised but also more job responsibilities and expectations, thus taking away time from family (which I think is grossly undervalued in our culture).

The only good thing I see out of this is it’s going to make companies evaluate how they do things. So many places do things so inefficiently that they end up paying 2-3x more than they need to in order to get things done. If they can do things more efficiently, it brings their operating expenses down which in turn could lead to lower prices for the consumer. From the church perspective (which is the world I live in), my hope is it makes churches reevaluate some of the things they're doing to ask if they're still effective in 2016+ or if they're doing them because they've always done them. Many churches waste their time on events and things to justify their paychecks instead of doing things that can reach and disciple people more effectively.
#509831
Jonathan Carone wrote:I think overwhelmingly this is going to have negative results. You'll see businesses lay people in the $20-30k range off and push the $35-40k worker over the $47k threshold and expect more hours out of them. The second worker gets a raised but also more job responsibilities and expectations, thus taking away time from family (which I think is grossly undervalued in our culture).

The only good thing I see out of this is it’s going to make companies evaluate how they do things. So many places do things so inefficiently that they end up paying 2-3x more than they need to in order to get things done. If they can do things more efficiently, it brings their operating expenses down which in turn could lead to lower prices for the consumer. From the church perspective (which is the world I live in), my hope is it makes churches reevaluate some of the things they're doing to ask if they're still effective in 2016+ or if they're doing them because they've always done them. Many churches waste their time on events and things to justify their paychecks instead of doing things that can reach and disciple people more effectively.
Events and things take less time than Discipleship. But it would be nice if Churches reevaluate why they do things as opposed to doing them because they always have. But there are many reasons why they dont
By LUconn
Registration Days Posts
#509833
Salaried people aren't normally punching in and out. So do they have to now? And what about flat rate employees. I know that's only 1 industry that uses it but it really doesn't make sense.
#509841
Let me get this straight…
As a salaried employee working beyond certain # of hours a week, and making a certain amount of money, the government will now demand you be paid overtime. LOL, this is government wisdom at its finest.
Opinion from a small Business Owner…
If I now must be forced to pay my salaried employees overtime rates, why would I not layoff the 40 hour a week salaried employee and bring in two separate part time employees working 30 hours each and offer no benefits. That’s 60 hours of work for less money. Am I reading this government garbage correctly? In most cases, forced with a decision like this, the employee would have to choose the later, due to the difficult economic atmosphere where every penny as an employer has more value than just .1cents.
Since the late 60’s or 70’s, most new legislation coming out of Washington has been exclusively greater bureaucracy and regulation, instead of initiatives to promote ingenuity. Countries don’t prosper and grow on regulation but when they are empowered and free to create.
#509843
Bandade for the larger problem. Need to control immigration, make better trade deals and wages will fix themselves. I ran into a father and his two sons at the airport, legal immigrants from Mexico. Somehow painting houses came up. The son explained to me that his father use to have a successful painting business. Then all of a sudden he couldn't make it. I ask him what happened and he explained his father was bidding on jobs like always and all of a sudden people were bidding half what he was. I ask how they could do it. He said they were illegals, not paying taxes and receiving all kinds of government assistance.
Last edited by TH Spangler on May 20th, 2016, 8:38 am, edited 2 times in total.
#509844
I just thought of something (that was the loud noise you just heard)
Lawyers came up with this law
Lawyers notoriously make newly hired lawyers work long hours their first year or two
Will lawyers write a loop hole exempting themselves?
#509847
Jonathan Carone wrote:
Jonathan Carone wrote:I think teachers are exempt, as are doctors and lawyers.
So what you are saying is I should read more accurately :dontgetit
#509853
http://blog.acton.org/archives/86853-5- ... rkers.html
1. It will cause low-productivity workers to lose their jobs
2. It will lead to reductions in salaries
3. It will lead to more lawsuits
4. It will lead to fewer salaried positions
5. It will increase college tuition costs and student loan debt
And these are just a few examples. And not only are lawyers exempt, but this will lead to #3, more lawsuits. Hmmm, who do you think wrote these regulations?

I have no doubt that one of the motivators for this is to increase the number of people forced into Obamacare. This administration has no interest in creating jobs.
#509858
flamehunter wrote:
RubberMallet wrote:anything that cripples the necessity for unionization is fine in my book.
Unionization vs more Govt mandates/control is kind of a wash.
not necessarily. and especially not in this instance.
#509861
ALUmnus wrote:http://blog.acton.org/archives/86853-5- ... rkers.html
1. It will cause low-productivity workers to lose their jobs
2. It will lead to reductions in salaries
3. It will lead to more lawsuits
4. It will lead to fewer salaried positions
5. It will increase college tuition costs and student loan debt
And these are just a few examples. And not only are lawyers exempt, but this will lead to #3, more lawsuits. Hmmm, who do you think wrote these regulations?

I have no doubt that one of the motivators for this is to increase the number of people forced into Obamacare. This administration has no interest in creating jobs.
I don't think you are thinking big enough on health care. It will make the cry for Universal Health Care louder
#509867
LUconn wrote:Salaried people aren't normally punching in and out. So do they have to now? And what about flat rate employees. I know that's only 1 industry that uses it but it really doesn't make sense.
many are punching. john deere, alcoa here locally, enormous companies, have employees punch in and out. because they pay overtime to their salaried employees already. both office and factory.
#509870
I wonder how that will work for the traveling sales types. I know a couple of companies got hit with OT law suits in the field I work. If I go on a road trip is the time away from home in hotels counted as part of the work week?
#509873
Purple Haize wrote:I wonder how that will work for the traveling sales types. I know a couple of companies got hit with OT law suits in the field I work. If I go on a road trip is the time away from home in hotels counted as part of the work week?
some companies consider travel differently. i clock for travel time and regularly work overtime. many sales jobs are based on a quota that is "x" times your base salary which can be a floating number and auto adjust. i assume that would be the case.

in competitive job markets, they can't fudge with it too much. if you don't want to pay overtime for your workers, get them to 50k. if you won't, you have to pay for overtime. if you don't want overtime, dont' make them work it.

forcing companies to pay overtime is hardly unfair.
#509876
I don't think it's unfair for companies to pay overtime. I think the $47k number is a little high (if they don't include benefits packages). Then again, I live in the south where $47k is a pretty dang good salary for people in two income families.
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