Employers nationwide gave raises to avoid paying overtime. Now they're taking them back.

[riversedge]

ICYMI very sad story.


Employers nationwide gave raises to avoid paying overtime. Now they're taking them back.
https://mic.com/articles/162196/employers-nationwide-gave-raises-to-avoid-paying-overtime-now-they-re-taking-them-back#.dQfrzskmv


By Jack Smith IV
December 16, 2016

Garrett Hutcheson, a supervisor at a catering supply company in the southwest, was told he was getting an enormous raise: a $7,000 bump to his salary of around $40,000. The extra cash meant he could move his young family out of his girlfriend's parents' house. Instead, he'll be staying there, working long night shifts without overtime pay.

"This would've gotten us on our feet," Hutcheson said. "I've still got hope, but I'm not optimistic."

Pay increases like the one Hutcheson got, the result of a regulatory rule change by the Obama administration, were set to help more than 4 million workers. Just the expectation of the new rule triggered raises for workers across the country, including managers at Walmart, Nationwide Health Insurance and at least half a dozen universities.

Now, as a result of the ongoing tussle between the administration and federal courts regarding overtime pay that began in 2014, an injunction against the rule means a victory for big business interests — and rescinding of raises for Hutcheson and an unclear number of fellow workers....................................

[Hoyt]

1. While I oppose the injunction on the rule, I think this story is bogus.

The article says: "An estimated 4.2 million American workers were set to benefit from the rule change, to the tune of $470 million. Some businesses, however, sought to sidestep the change by bumping their employees up past the $47,476 mark — a slick way out of paying overtime, but a boon to workers nonetheless."

That $470 million "benefit" to workers equates to $112 per person if the 4.2 Million amount is anywhere near accurate. Somehow I don't really think very many employers bumped pay thousands of dollars to avoid that $112 on average.

I'm sure a few ignorant employers might have done it, but I bet it wasn't many.