QSR: Last-Minute Federal Injunctions Halts New Overtime Regulations

Right before the Thanksgiving holiday, a judge in Texas ordered an injunction on a federal overtime rule change that would have had a major impact on all franchise concepts, especially those within the restaurant industry.

According to an article on QSRweb.com, the rule, which would have went into effect on December 1, would have meant that businesses would have to pay time-and-a-half to employees working more than 40 hours a week and earning less than $47,476 a year.

So, while many corporate executives were thankful for the injunction, many had started to put plans in place to contend with the initial December 1 deadline including growing Dallas-based better burger franchise MOOYAH Burgers, Fries & Shakes.

"One of the benefits of getting into the restaurant industry at a young age is the opportunity to advance and create a career," Michael Mabry, COO of MOOYAH, told FastCasual.com. "We have a lot of entry level management opportunities and we are providing a pathway to a career for many young people who are sometimes coming right out of high school or college. I think there could have been more of a stair-step approach here, or a more industry- and city-specific plan that could have accounted for the differences in our industry, and the difference in the cost of living for the various cities we serve."

Businesses across the franchise community with wait to see if the overtime rule change is overturned as Donald Trump takes office in 2017.

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