Having been in an office job for nearly fifty years, most of that as a manager or above, I can tell you the new overtime rules from the Obama Administration are going to have many unintended consequences.

Under the new regulation to be issued by the Labor Department on Wednesday, most salaried workers earning up to $47,476 a year must receive time-and-a-half overtime pay when they work more than 40 hours during a week. The previous cutoff for overtime pay, set in 2004, was $23,660. From NYTs article.

One of the biggest consequences will be tracking of hours worked and limitation of those hours. And there will be greater tension between employee and employer.

Sure, no doubt there were abuses under current rules, but whether they outweigh the consequences of the change is questionable.

Let’s say you are a true manager, professional or other worker exempt from overtime under the job duty exemption, but not now under the new salary limits.

As a professional you do what is necessary to get the job done. I often worked 50-60 hours a week, sometimes went to the office on Saturday. I did so because of the work load at times, but also to build my career. I didn’t ask for OT (or even standard pay) and my employer did not require it, but did expect the job to be well done.

imageAll that is now out the window. The flexibility for extra effort doing a good job is gone.

True professionals don’t watch the clock, now many will be required to. 

Employers must protect themselves from the law for these formerly exempt professionals.  They will require strict tracking of hours worked and likely prohibit working such as I described, but you can bet they will still expect the job to be done.

All this leaves the worker in the middle with no additional pay and greater stress on the job; a professional no longer.

No good deed goes unpunished, especially a government deed.

Should you have an interest, you can find the final DOL rule here

One comment

  1. Who comes up with this crap? Even if you adjust for inflation since 2004, you only get to $29,968, not $47,476. So under the new rule the guy making $50,000 gets nothing more and a guy making $47,476 or a little less, could end up making more than his boss. An extra $17,803 per year,total pay $65,279 for just 10 extra hours per week. Sign me up.

    RESULT – New company policy any manager within $2,000 of the new limit will be raised above the limit and everyone else will be paid hourly with no more than 40 hours per week. All end of year performance bonuses have been eliminated. I raise the BS flag. BHO BOZO and crew will not be happy until everyone is making the $15 minimum wage.


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