In another desperate attempt at legacy building, the Department of Labor just released a new rule on wages … and it’s horrendous.
Slated to go into effect later this year, it doubles the annual threshold for salaries that determines who gets overtime pay from roughly $23k per year to more than $47k. Workers who make less than $47k in salary will now be able to bill overtime for work that exceeds 40 hours a week. File this new rule under: when helping hurts. Let me explain:
First, it adversely affects an employer’s ability to predict and control costs. Which will be yet another impediment to growing businesses.
Second, all this rule will do is force employers to send more people back to hourly wages with tighter caps.
And last, remember that lower salaried position a recent graduate used to accept to work hard in and move up the ladder? There will be fewer of those.
All told, it’s just bad for the economy.