WWL>Topics>>7-1 6am Tommy, overtime pay

7-1 6am Tommy, overtime pay

Jul 1, 2015|

Tommy talks to Ross Eisenbrey, VP of the Economic Policy Institute, and Aparna Mathur, Resident Scolar at AEI, about new overtime pay rules.

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Automatically Generated Transcript (may not be 100% accurate)

You don't know that. Story of a program covers. I do that a lot to myself actually I don't know I don't know I don't know I'm tired dune two I should know. And you should know. The other particular issues like to share Adam. I don't know Ari I gotcha I suggest the out you know. I say that a lot until it doesn't begin in less and less care I don't know I don't care plan. That's not a good thing you know it's evidence will though issues and all conversations as Kofi Annan and it down and I was I don't it'll blind. Ares I am on a care in an annual point in go to Oregon today. Much pop. Yes do you like the smell a pot the smell of a yes or the taste and somebody tried to feed me a pot brownie once inning and it gag reflex Obama because I couldn't take that taste. One I take Betsy the boxer on a ride around belt tournaments and who it is August betting on the garden Arianna issue or somebody gets them pot grown and a garden are but unless there is a flower that smells like pot I do not now. But it seems as though so my point is even if it was legal I wouldn't indulge now you know line. Mark at you after you're done no such. These burning issues yet are still aren't. Clay somebody tries engage in a conversation about gay marriage you're about the confederate flag assault that has and it just kitchen where you just say the broad vague so they did so they can argue their head off with the year I just Sega dissident I don't know. I I understand it depends on the the day and how you feel of the time you might be geared up to a notes as you know a real squabble not I don't know. But he won that married anymore because they do so much talking here at all beyoncé and yet nothing to laugh when he got out Marley now. So it's. It's pretty tough for you I would think although you do spend time making up news she you don't have to have the conversations that I have and then go home and have some more with people it that are railing about gay marriage you're around you do your job unlike mine is to debate people and challenge them and I am and DeLia and a bomb but. The point is that. The dog doesn't express a lot of her opinions. You know she hears about bones. She cares about hiding under dog loves a Haider bones she cares but on her bicycle ride and she wants some attention and that. I'd have to talk to about anything instead of you know rubber neck that's an Iron Maiden and have an however she did have a nuanced take on the situation in Greece. If you tried to attack me draw me into debate about what is what's happening in Greece hi cautionary tale about the United States to which I replied. And I gave her opponents are now 612 coming back on dead WL we will series up and talk about Greece about overtime here in this country. Who should who shouldn't get it is the president. Jump and a new situation about business. About which he has no idea because he's never owned a business will be back Johnny Decker double WL. I'd is going to be hot today as it has been and will be until say mid October that you bring cloudy hot 40% chance friction hours today. It's 1% tomorrow 20% Friday for the big July 4 celebration on Saturday at 30% chance to show hours. And likewise on Sunday it is already 73 degrees and muggy and zone get out the Obama administration has proposed overtime changes. Which changes in the way the overtime wall works I guess for businesses. And both for employees here to talk about this. Rue about it rather Ross you talk about those of you like Ross Roy is Ross I's and very vice president the Economic Policy Institute good morning. Good morning. Eisen brand so sorry but I. Tell me about what the president proposed yesterday. Well he proposes a very simple change did the overtime rules for salaried workers. Have essentially two important parts one says. You're salary has to be above. A certain level to be exempt so if you make less than that salary level you're guaranteed overtime. And then if you are that salary level then paired duties tests you have to. Your employer has facilities and executive. A professional employees or. An administrator. Tied to have you exempt to to not pay you overtime. The key thing here is that salary level which is currently. Below a poverty level for him if for only 23000. 660 dollars it's eroded. For four decades and and basically people don't even know about it salaried workers are entitled to overtime. So the president is raising that threshold. Back approximately two where it was in the 1970s. And that would be 50440. Dollars. So that's given inflation I presume Ross and taking place future value of money and all that stuff yeah yeah and it doesn't quite take you all the way back to where we were in 1970. Or 1975. But did it get to most of the weight back as if you're restores most of the same level of coverage for overtime that we had back then so. I'm starting in 2016 that this rule is made final. Anyone who makes less than 50440. Dollars will will know that he or she is entitled to overtime. Even if you're salaried because it seems to me there's a movement among countries companies or maybe it's to get over the threshold. To elaborate give you 27 grand agreed to be a big title but we can work eighty hours a week giving overtime is that pretty well the with a way it is now. That is exactly what's happening again and and really sometimes people end up working for less than the minimum wage. They're they're called the manager Bert and given some fancy title and then it works so many hours that they end up making. Less than the minimum wage. So you weren't forty Megan 2366. Years of 4840. Right. Right right now it's the F forty hours a week 23660. Dollars is the current. Annual limit. So they can kick yup did Tony EA game be a big title working eighty hours give you know overtime outright but yet if you make. 5000440. If you make less than that then you get the overtime. And under the rules proposed plan yeah under the proposed plan you make anything. Less than that you're entitled to overtime if you make more than fifty essentially 50000 dollars. Then the employer to test to show that your duties are. And it and it's a very they're they're very big task I have to say. That your an executive demanded something and you have to employees supervised or in this is that really they've won your administrator. Or. Your professional. Administrator by title only. Well that you're that if it is it's such a big test it almost becomes that. So what it would it means is you do something important that the employer thinks is important the year in an office setting. And. So. Can make decisions. Even though those decisions can be overridden by your by your boss. And even at that. That government doesn't investigate this you would have to make a complaint against the company for which you wake working. The other thirteen hundred investigators for the entire country for seven point four million. Employers so the chances that a government investigator in the get two year. Business are very slam you have to know what your rights are you have to call the government or you have to get a private attorney is. Protector right. Yet a couple of minutes on a comeback and I get a beat on by 630 our time but I'd like to ask you about how do you. How to go about implementing this is just an idea by the president something he can do it executive order etc. Ross I's and ray. Yeah Iran's size and bring our guest vice president the Economic Policy Institute. 260187. If you have any questions he's our gas six only one time now to look at traffic under the W. Is six Sony five Tommy Tucker lucky enough to talk to Ross ice and very vice president of the Economic Policy Institute about the president's plan. To make anybody that makes less than 50440. Dollars eligible for overtime. Now is he changing the hum restrictions in terms of bid being a company calling you an administrative assistant or anything like that Ross or proposing to change it. I know he's the this rule making asks for comments from the public on that subject that I think it's. That they didn't propose a change there and I don't think they're gonna make a change in the next year. But still a much higher threshold sue if you wanna pay somebody 50000. 500 and and change the rules for them they're still doing a lot better than they are Tony 3665. Absolutely and and this is gonna affect about fifteen million people so it's a it's a pretty big deal. I would about effects on the economy both ways in terms of consumer spending power and increase prices because I don't think there's any way you can increase salaries or expenses for business without it being Panasonic consumer including taxes canyon. Well of course you can you can just have the executives take home less you can have the profit margin reduced a little bit. You know we have a problem in the United States that their wages have been stagnant or falling for years because. You know the de Monterrey in the business community is cut labor costs cut labor costs. And that doesn't mean less money in the pockets of workers who are consumers. And that ultimately that's bad for the economy and this is a small step really. Turning back thirty years of reducing labor costs to the point that people are struggling to get by even middle class people. So we're saying that companies. Are still paying wages from 1975. The charges price charging prices for 2015. That certain that the direction things have moved exactly yet which is really has not risen in real terms from men. Since about 1973. So in terms of threshold of number of employees is there for this. I'm tired of having so in terms of of a minimum number employees I guess is is there a and amount or threshold for this where if you employ five people are less you don't have to worry about this if you rally for. No it's just like the minimum wage if you're in interstate commerce or your business as. 500000 dollars of revenue Mori are covered by this loss. How would this affect gum businesses. It do in the opposite instead of calling somebody an administrator and in pain and just above. That minimum amount and then Morgan a more hours of no overtime. How how would that affect its say people. In an inadvertent way being laid off for being cut back to part time especially when you factor in. The obamacare regulations are you on that time at the right thing to do with a moral thing to do talk about the economic argument here with business owners and ways to maximize their profits. Well The National Retail Federation did a report on this rule actually before it came out anticipating what it would say. They they said. Businesses would reduce the hours of managers. And transferred rather than paid them the additional time and after its. Yeah it's a 150% of your regular rate is what. Overtime pay has. So rather than pay that to the people who have been calling managers. They would shift that work to lower paid people. Now that's actually a win win manager works less. But the salary hasn't changed and there's more work given to people who really needed you know the part time people we have. Millions of people in the US right now working part time in voluntarily they want more hours but they're not getting them some work will be shifted to them. That's a good thing. Well those people can't be cut back to part time. Are the people not that'll get the extra work. And more part time hours but it would seem to me if I'm running a company and again announcing in his immoral or socially responsible thing to do. But if I'm looking for a way to circumvent this I'm in the San 91. And any coming in touch you back. So part time where these rules would apply rights yet work at least forty hours. Yeah it to be paid overtime after recording Societe one we've had in a downturn toward downsizing. And we get to catch back to 35 dollars. Well it if there's downsizing employers will always tried to reduce staff but. You know most businesses have a certain amount of work they have customers that got. Businesses they've got his service they have to get the work done so the question is how they distribute or. Do they do they give it to someone who they were an extra thirty hours a week without paying them. If they have that option they'll take it and they have been taking it. This rule says no you can't do that you have to pay people for the hours they work and so the business might read distributes on the network to lower paid people but but that's actually a good thing. Thank you I'm glad we I had the time with you Ross and the great Dave Ross I's and bring vice president the Economic Policy Institute. Now after the newsroom to talk to a par and math or who is a resident scholar at the American. Enterprise institute our guess is that was at the Economic Policy Institute. And I believe. They're going to be against what the president is proposing a Texans in president is killing small businesses as he thought of the amount of money this will cost them. Now when no one and I mean no one makes less than and listen military do the math we were 24/7 and divide that empire salary. And in the oval in the whole thing is bad news for me I already made just over the dollar and if this passes everything will cost more. I'm 33 years old with a young family of four we will continue to discuss this when we come back right now time for Devin WL first news with David Blake. Load David leg I don't know edges still new I don't know usual stock or McDonald's. Your brain overload you know saying it confederate flag being gay marriage you know bombing here. There was one other uneven noted is. Now there is I don't know now all of these things to think of the of these note hey is it not okay. I've been trying to get with those they'd get an estimate on paid and over the garden for a couple of days they can make that happen and I had a closet full of flowered shirts that I know we're gonna go out of session next year yeah altars no question about it some reason wrapped the pipes when it freezes. And Anita belongs and like a 110 year old man so I don't know I just. Don't now know it sounds like you're really stuck and I don't know I don't know I really don't listen com. Your salaried correct I'm not trying to get up all the Gallup and you're our knowledge and share of that stuff. But yes I am you'll let me phrase this way are you overtime eligible. Not that I know. I because. Now that you've seen or your paycheck. Because I would like to know as far as this new President Obama. Suggestion. Proposal. Pipe dream whatever you call it if if you sign a contract an employee services contract is most of this hand here. Well then do you waive your right to overtime let me say that. This one thing I do know is I am very happy. Working here what I'm making here asking not about me this is eighth the radical concept. But I wonder if you sign a personal services contract does that trump anything. If say you agreed to work. As salaried employee do whatever the company is calls a point out regularly doing eighty hours a hundred it don't matter well I don't know maybe that threshold applies to them. We'll see. When we come back Tommy Tucker David Blake Shelden Williams. Jordan Spiegel and you altogether talking about the president's. Proposed seeded don't know either. They don't know August that expert on it recently disown him inevitably people would call and say you got a microphone open. Is it somebody talking in the fact that song and I don't know why. I'll come back talked to a person who music dance this president's idea of the previous this week it was void. And wound up 10 do you think it's music so when he seventy I hope to goodness you know. And you don't take that position I don't know because. If you do on them to be read you know stories about chickens and opinions. And a flash that it have you. 64614. Before seven it is going to be hot today but on July 1. If it was anything else you'd have a scope 40% chance for showers today Tony tomorrow Tony Brian Gay. Thirty on Saturday and thirty on Sunday they heat indices between you have got to be kidding me and comment on outside miss. Part of modern joins us right now risen scholar at the American Enterprise Institute good morning man. Right. Thank you for coming on with a semi about the your view of the president's proposal to. Raised the threshold. That. Employers would have to pay overtime from 23660. To 5440. Right I mean from my body is. And I am sure that the proposal that the intention and people out and probably Phoenix like that that they are working on these ballot and not getting beat it. But my body is that if increasing this trend to lead. What it you know what anti Valentine thing to act and not privately that they. Not and he could that mean these book it even more if I get them to work more than twenty two weeks. Then I need to cut out some and and it did not music on it killing at. He implies that the edict that the beastly so that it begins comedy the only time that they have to be. And and that might it increased the purse stolen hiding look at Glenn and Frontline. Feeling that he's seen that before they can't back and leave me you know I I've seen that this is and other trends. This is another distinction that it would shut and that connection if any at six million. But then look at England did he spot and employed and we don't want to entries that you know any any indication that it percent find out. Now that shall. You think the president and I do not mean this is respectfully I would love to go play golf with this guy I would love to hang out the president. I think he's a nice man I really do but I don't think he has any idea how business works or if he does. He's determined to just change the business system in America the economic system and somehow in his mine's nine. He almost stinks then and optimize all ex surgeon. And a and a guy that sets opinions of the bull and only guess again machines do that now public to understand my my point is that part of that everybody should make the same and it never was that way and it shouldn't be that way nobody should have a big giant house. You'd get the house that you can afford and and that I think economically is based on. What you're skills that allowed you to do and if you work hard the level to which you were able rise. After the beginning of opinion and I think. You know want to get in that engine life that it has been a change in heart abruptly it functions how you know holly and lies and to actually employees and I think. Trying to make it accurately and ship at the end of the (%expletive) kind of made it did that relationship is. It's not going to work out I mean we have people's lives you know living duplicate ballot because they would be feel that the suspect for the committee acknowledged it. They feel like not to imply is bulletin that these gothic I have to put in these additional island. You know I'll pick up much flexibility an odd people that the fact that you know ended in not putting an economic problems but. You know they can welcome Paul and it looked on the weekend how well that statement. The gift that distinction I mean how how it implies an employee's knowledge that those that I'm thinking that the you know we've begun to the flexibility anymore because now we have that. Can delighted about that is Oleg did you want that extra outline and you know for this time she comes out with a dead I think. It's the complete misunderstanding of how businesses operate these days Powell in a people function in the nature of what has changed and and yeah I'll be competent people that gene means implies might give more vacation time people might not a lot of fun the flexibility. Could saying met via and I need to be open more full time TV network in this economy and why. C and I get a text here that says so you think it's fair to make. Two words fair to me some money working eighty or ninety hours a week and only get paid for forty well. I think it's a little knowledge I have again a bit again out of economics I'm sorry is. There is going to be social pain there is going to be disruption but that's the way markets work for example if there are no jobs in Michigan but there are plenty of jobs in California. And everything you know everybody you have risen Michigan. Well the economic principles says well the market will eventually. Reach I guess a balance. Or is it the homey as states is by people moving out to California qualified people and take you know jobs but there is going to be some disruption. In lives and if you try to minimize that. In through an economic prism then you mess up the market accurate or not. Yeah accident and the you know fundamentally believe that pockets and if you feel like you work in the media leak and being beat sloppy. At this time to speak up and say. Yeah I need I need extra money I eat Chinese hi I'm Laura moved. To a different job good job at UT and mean did you know competitive positions and job and it is yet it as a tough economy and people that I have more at risk of actually not been listening to the beat goes on it but I think. Like Johnson caught having outweigh the bad luck. Are having at vanity you know because of these it would tighten. And it is stations. Much higher today and it lives yet if if if it gets he gets spot and you might actually be let off. And today when the implied might just elected hiding. Many more people will act and act like BI special. And trying to get. You to look the extra outlet second and many many things that you know really not thinking about and on principle that sounds great and you know it's not even mentioned by. I think in many many Wii is that this might play out and we need to lie about. Any tax business and you forced businesses. Pay employees more without those costs being passed on of the consumers assuming. The employers the business whatever is not going to reduce their profits in terms of a business news that they conduct some meals as a model question but it think you understand went on when it. I. Don't know if you force where I businesses to use to pay more taxes if you force businesses to Plame pay employees more. Won't that be ultimately pass on consumer. Active duty and in many means to adjust them diet might decide okay. You know I have the high cost like and cut out of the ages can cut I didn't. By the prices up again you can spot the cost on to concealment in the summer I've tried says. I Kenya prosecute capitol police if you can get more technology to meet the people that that that went into hiding and doing these jobs. But these doctors becoming much more costly for me you know on the domestic did updated technology. And event and then many implied in this spot and he and principles that you could cost difference isn't there an immediate going to be better off but I can completely without injury department could occur in the Nazi party. Benefit that became queen at Nike to see. On on a job interview one time along time ago. When I was in music radio about the point. But the guy interviewing me he said why can I hire you running game and answered these angry machine and your do that easily. Thank you doctor pre and exuberance doctor. I like to acknowledge you know our cars and knocked up part of matter route mater president resident scholar rather the American Enterprise Institute like Tokyo about this two's exit one point seven. Miami laissez Faire economists I think the market will eventually balance itself out if you landed but there is going to be a lot of personal and social disruption however if you get involved and try to prevent that personal and social disruption. The market is going to be screwed up it's just the way I see I get fired tomorrow gives some would deny it here. I have a choice I can either go. Flip hamburgers. And take a slight pay decrease or I can. Take a radio job and another market which means everything I leave I have here I leave and I started new life but that's the economic principle. The other thing is that EE if I wouldn't produce and I am producing then they would say well I think he'd be around just you here on producing we have we pay you to bring in an audience and produce results and it's quite thank you so much for listening. 644. 654. Rather now time for that WL traffic. Tommy Tucker talking about the minimum wage as it relates to employees and it's kinda complicated thing if your business owner you know this if you have an employee. That works forty hours. And is in a news Juan Ortiz if they're not in an administrative capacity right. Then you have to pay them overtime. If they make. 23660. Or less. The president wants to change it. 250400. In forty dollars so the same rules would apply except for that limit of the threshold of money. And we have an economist on who isn't supported this that said that number 5000440. As opposed 23660. That is when he 3000 dollars to 50000 equals when he 3000 if you look at today. And 1975. In terms of inflation and future cost of money which is in a vacuum and accounting book that I never did understand which is why I changed to. Communications. Next hour wouldn't continue our conversation about this. We'll also talk about profanity in the classroom and an L issue professor getting fired. For that and I think it's outrageous and talked wanna come back stick around pleased that W.