Tom Dougherty — small business owner — has a few things to tell you about Professor Ditherton Wiggleroom’s threat to use his pen to double the salary where overtime rules apply:
The economic implications are completely counterproductive and potentially disastrous. Unlike the call for an increase in the minimum wage, which I disagree with but acknowledge it can be budgeted for by a business, this latest proposal creates huge uncertainty for business owners.
The nature of an employee who is compensated by salary is that some weeks it may take longer to get the job done, and they may have to work a slightly longer work week. It is impossible to calculate, and therefore budget, for such occurrences, and if an employer mandates to their salaried employees that such additional time cannot be spent when necessary then productivity decreases, and the business’ well-being suffers.
The number one issue that most small businesses, and even large corporations, fear is uncertainty; and President Obama and his failed economic plans have already created enough uncertainty, that if it could be turned into electricity it could power Las Vegas for eons. This current proposal would simply increase the uncertainty exponentially.
Big labor, big business, big exchanges, big government — it’s all about herding people into large and easily-controlled organizations.