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Caudillo Knows Best

March 13th, 2014 - 8:30 am

Oh fer cryin’ out loud:

President Barack Obama is expected to order a rule change this week that would require employers to pay overtime to a larger number of salaried workers, two people familiar with the matter said.

Currently, many businesses aren’t required to pay overtime to certain salaried workers if they earn more than $455 a week, a level that was set in 2004 and comes to roughly $24,000 a year. The White House is expected to direct the Labor Department to raise that salary threshold, though it is unclear by how much.

Ross Eisenbrey, vice president of the liberal Economic Policy Institute, and Jared Bernstein, a former White House economist, recently proposed the limit be increased to $984 a week, or roughly $50,000 a year.

Small business and entrepreneurs are absolutely screaming at the mere thought of this one. Long hours, followed by longer hours, to get over the hump of fixed finances and uncertain sales typifies the launch of most any new startup. What Professor Wiggleroom seeks to do is more than double the salary level exempted from overtime rules.

So that salesman who had been busting his butt for 60 hours a week at $45,000 to make the company grow, is now going to cost the company thousands and thousands more. He’ll have to bust his butt even harder just for the company to stay even — and to keep him employed.

Entrenched players will pass the “savings” on to you.

Once again, Wiggleroom has discovered another novel way to protect the big guy by putting the squeeze on the little guy.

RELATED: ♡bamaCare!!! increases inequality — Deb Fillman has the in-depth look at something I merely touched on the other day.

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All Comments   (4)
All Comments   (4)
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Here comes the world of 1099M employment. I have no employees. I hire independent contractors fee for service. No payroll taxes. No hourly rates. No steengkeeng wage mandates.
See: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
22 weeks ago
22 weeks ago Link To Comment
So, $24K in 2004 $'s requires ~$29K in 2014 $'s. Where did the extra $21K in the increase come from? Unicorns?
22 weeks ago
22 weeks ago Link To Comment
Semi-related: got an email from AAA today touting their new 24 month CD. APY is . . . 1.1%
They're also claiming the national average is . . . 0.4%
22 weeks ago
22 weeks ago Link To Comment
From the linked article:
"Daniel Hamermesh, a University of Texas economics professor who specializes in labor issues, said he sees only positives in the president’s plan, even if businesses end up cutting employee hours because of the new policies.

“I would argue it’s a job-creation program,” Hamermesh said. “There’s no question it gives employers the incentive to cut the hours of some people. But if you do that, it increases the demand for more individuals, and that creates jobs.”"

This is asinine. This "economics professor who specializes in labor issues" is saying the equivalent of 'flap your arms hard enough and you can fly -- that's how birds do it!'
Hamermesh is a labor economist. That is, he is an ideologue. He should no more be quoted on economics than a creationist should be considered a source in a story about the science of evolution.
22 weeks ago
22 weeks ago Link To Comment
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