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Fast Casual: NRF: Obama’s overtime rules will 'hollow out' management jobs

Industry observers warn of ‘massive hidden costs.’

By Nick Powills1851 Franchise Publisher
SPONSORED 2:14PM 05/20/15

President Obama’s Affordable Care Act hasn’t won him many friends in the franchise industry, and its doubtful his approach to overtime regulations will remedy that.

Fast Casual recently reported the Obama Administration’s plan to overhaul federal overtime regulations will likely reduce management positions in restaurants. This is based on a report from the National Retail Federation, which went on to say such changes will lead to a shift toward more hourly and part-time positions.

"This is a workplace regulation with massive hidden costs," NRF Senior Vice President for Government Relations David French said. "Any potential lift in take-home pay would be a mirage, but the consequences of this rule would be real, in terms of higher costs for businesses and less opportunity for employees to move up the career ladder from associate to manager. The overtime rules would hollow out middle-management careers and middle-class opportunities for millions of workers."

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