Beware Obama Bearing ‘Gifts’

The adage that there are is no free lunch is no more apparent than when President Obama offers it. In this case the rules that control how overtime will be paid in the future is full of land mines and consequences. I can hear him now: “If you want your overtime, you can keep your overtime.”  This will not be true as any economist can tell you. The cost increases to an employer will be compensated for because corporate survival is Rule Number One. Rule two is that corporations do not pay taxes, they are simply passed on to the consumer.

Barack Obama

As Written By Eileen F. Toplansky at The American Thinker:

Beware Obama, the Benevolent:

When President Obama stages a photo op to publicize signing a measure he claims will “help” American workers, you can be almost certain that “unintended consequences” will outweigh any intended benefits.  Lacking even an elementary understanding of how a market economy works, he only makes things worse.

In an effort to avoid the Obamacare mandate, many companies reduced workers to fewer than 30 hours per week. This reduction of employees to part-time status continues to cause endless difficulties.  Employees have fewer hours and less income than they want, and employers have a harder time staffing their companies.  But the Obama administration continues to expand its grip on all aspects of American life.

In 2014, the Labor Department proposed that under the Fair Labor Standards Act, about five million U.S. workers [would be] newly eligible for overtime pay by more than doubling the salary threshold.  This change is already being felt by many companies and now it will extend to colleges and universities.

How do businesses react?  In some cases, “employers may attempt to convert these workers to an hourly wage, lowering their pay in the process so that their total weekly compensation, including overtime, remains constant. Other workers, whose salaries are just under the exemption threshold (expected to be $970/week in 2016), might see a small bump in their weekly pay to raise them above the new threshold.”




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