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Although I am by no means an Obama supporter, I agree with this move. Far too many employers are getting away with calling people managers just so that they can cheat them on wages. Of course its ultimately the employee who lets himself or herself be taken advantage of, but in many localities, the practice is so widespread, that it seems like the whole business community is conspiring to keep a whole lot of folks stuck in low wage jobs, while the owners clean up.
Haven't personally met a salaried worker that made less than 25k. Actually, I haven't met a salaried worker that pulled in less than 35k really.
This reason is exactly why I've turned down managerial positions. Absurd amounts of work for a little more money and no hourly compensation beyond 40. Divided out, management in many places make LESS than their hourly counterparts.
Haven't personally met a salaried worker that made less than 25k. Actually, I haven't met a salaried worker that pulled in less than 35k really.
This reason is exactly why I've turned down managerial positions. Absurd amounts of work for a little more money and no hourly compensation beyond 40. Divided out, management in many places make LESS than their hourly counterparts.
80 hour weeks during residency, for $45k/yr with just two weeks off...
And teachers are still exempt, so we can keep that pay down too.
Oh and of course we won't let this apply to the men and women who defend our freedom and interests working insane hours in outrageously difficult environments. I guess if you paid Johnny the E1 a salary of ~$48,000 you'd have to pay more throughout the pay scale (and don't tell me dorms, DFAC's, or healthcare count, not when healthcare doesn't count on the civilian side, and DFAC's expenses are debited no matter if one eats there or not, and the size and condition of a Dorm or Barracks room is akin to renting a crappy bedroom in a bad part of town where you aren't allowed to use the common areas).
Why are we willing to pay a shift manager at Applebee's more than these needed professions?
80 hour weeks during residency, for $45k/yr with just two weeks off...
And teachers are still exempt, so we can keep that pay down too.
Oh and of course we won't let this apply to the men and women who defend our freedom and interests working insane hours in outrageously difficult environments. I guess if you paid Johnny the E1 a salary of ~$48,000 you'd have to pay more throughout the pay scale (and don't tell me dorms, DFAC's, or healthcare count, not when healthcare doesn't count on the civilian side, and DFAC's expenses are debited no matter if one eats there or not, and the size and condition of a Dorm or Barracks room is akin to renting a crappy bedroom in a bad part of town where you aren't allowed to use the common areas).
Why are we willing to pay a shift manager at Applebee's more than these needed professions?
You're baby-with-the-bathwatering this. Is it perfect? No. Does it make everything fair? No. Does it address some problems in some workplaces that will help some people? Yes, it does.
80 hour weeks during residency, for $45k/yr with just two weeks off...
Yes, but as you well know, Residents have always been considered "students" not "employees" in the employment law arena, although case law has slowly but surely been chipping away at that and correcting as needed. I wouldn't be at all surprised if they are carved out of these new rules. For those with salaries over the new criteria (which I would imagine are almost all PGY-2's or above), it's probably a moot point, because physicians always have, and always will, meet the duties test to qualify as Exempt employees. So do nurses for that matter, although very few hospitals choose to classify RN's as Exempt, lest they never be able to hire any.
Every worker, by law, under the FLSA of 1938 must be paid overtime for hours worked in excess of 40 per week. They can be exempt (which most people mistakenly refer to as "salaried") from this law, however, if they meet two tests....
1. The first test is the salary test
2. The second test is the duties test
The salary test is what has now changed. Previously, it was right around $450 per week, or around $24K annualized. Unchanged since the 1970s. Of course, given that low threshold, almost everybody met the salary test, so to determine exemption status, you would almost always have to move on to the duties test. If you can't meet the salary test, you are automatically considered nonexempt (and overtime eligible). Full stop. No further analysis needed. Now that the salary test is $47K, there will be a fair number of entry level, degree required, professional positions that will now be overtime eligible. Think entry level Accountants, Marketing, even IT positions. These changes also assist people like shift supervisors in fast food, retail etc that employers would attach a "Supervisor" or "Manager" title to in an effort to make them work long hours without the benefit of overtime (even though they often spend the majority of their time doing the same duties as their subordinate nonexempt workers).
The current threshold of around $24K per year is pretty laughable. This change was indeed long overdue.
I agree.
Some employers have really abused the rules to mandate overtime by people who should be hourly.
But this is the same problem as the minimum wage. The feds set the bar. Then they wait for 20 years or so before they address it again and by then things are a mess. They need to have yearly increases by 2% or something like that so we don't have to wait until things are really bad before changing things again.
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