Overtime Rules

The US Department of Labor has announced a proposed rule that would extend overtime protections to nearly 5 million white collar workers within the first year of its implementation. Failure to update the overtime regulations has left an exception to overtime eligibility originally meant for highly-compensated executive, administrative, and professional employees now applying to workers earning as little as $23,660 a year.

For example, a convenience store manager, fast food assistant manager, or some office workers may be expected to work 50 or 60 hours a week or more, making less than the poverty level for a family of four, and not receive a dime of overtime pay. The June 30 proposed regulation is a critical first step toward ensuring that hard-working Americans are compensated fairly and have a chance to get ahead, according to the Labor Department.

The National Restaurant Association issued the following statement regarding the Labor Department’s release of their proposed overhaul to current overtime regulations:

“While we are still reviewing the Department of Labor’s proposed overtime regulations, at first sign, it seems as if these proposed rules have the potential to radically change industry standards and negatively impact our workforce. As with previous policies put forth by this Administration, we are deeply concerned with the outcome this process will have on the employer community and our employees.

“Supporters of these regulations say they want to increase Americans’ take-home pay, but these sweeping changes to the rules could mean anything but. More than 80% of restaurant owners and 97% of restaurant managers start their careers in non-managerial positions and move up with new, performance-based incentives. If these regulations stand, that mobility and adaptability of employee schedules, which makes our industry appealing, will be severely diminished.”