If your staff make less than $1000/week, you’ll now have to pay them overtime – even salaried employees.
If a new overtime pay rule proposed by the President and presented by the US Department of Labor on Tuesday, June 30th, is adopted, cleaning business owners will be looking at an even more complex compensation calculation system – even for salaried employees.
Here’s how it breaks down:
- hourly workers who gross $1000/week or less would be eligible for overtime pay
- salaried workers who gross $50,440/year or less would be eligible for overtime pay
It’s easy to assume that the 5 million hourly workers in the US are rejoicing at this news, but other supporters include various labor unions known to advocate for higher wages in general, specifically the AFL-CIO.
It’s easy to assume that employees will rejoice, but you might be surprised by some of the opponents of this change:
National Retail Foundation: “Overtime expansion would drive up retailers’ payroll costs while limited opportunities to move up into management.” and “most workers would be unlikely to see an increase in take-home pay, the use of part-time workers could increase, and retailers operating in rural states could see a disproportionate impact.”
National Federation of Independent Businesses: “rule will be especially tough for small businesses in small markets.”
National Restaurant Association: “it seems as if these proposed rules have the potential to radically change industry standards and negatively impact our workforce.”
What YOU Can Do
- Read the bill in its original and entirety; avoid forming opinions based solely on others’ interpretation of the bill and proposed changes.
- Register your comments here by September 4th, the end of the required 60-day public comment period. Please note that your comments will become public record and cannot be filed anonymously.
- Compose and post your comments to the office listed in the bill (link above, instructions on page 2).