Overtime Pay Law Affects Thousands of Marketers
Yesterday, President Obama announced the “Department of Labor’s final rule updating the overtime regulations” for middle-class workers, which at least one trade association says will hurt marketers.
While the rules regarding workers who earn up to $913 per week or $47,476 annually don’t hit until Dec. 1, The National Retail Federation says the overtime pay proposal will drastically impact retailers and restaurateurs. Rather than paying workers more, NRF research shows marketers would cut workers’ hours.
“Most employees would not actually see a change in net pay,” according to the NRF. “Instead, many employees would see their hours reduced so that overtime would not be worked, while others would see their base wages, benefits or bonus pay decreased in order the offset the added payroll expense.
“The study also found,” the NRF continues, “that updating payroll systems, establishing ways to track employee hours and other administrative expenses would cost the restaurant and retail industries alone an estimated $745 million even if workers saw no additional take-home pay.”
What do you think, marketers?
Please respond in the comments section below.
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