The new overtime proposal may lead to companies hiring more low-wage employees.
The Obama administration’s initiative to raise the number of hours Americans must work in order to be eligible for overtime pay may lead to an increase in low-paid workers entering the workforce.
That’s according to a Wall Street Journal article which took a look at the potential impact of the initiative. The proposal would make about 4.6 million more American workers eligible for overtime and raise the salary cap nearly double to $50,400 for salaried employees.
“It’s going to be a balance between how many inexperienced, entry-level workers you can bring in versus the need to maintain a high level of guest service,” MOOYAH Burgers, Fries & Shakes COO Michael Mabry told the Wall Street Journal, adding that the rule change would alter their current structure of operating with a smaller number of more experienced employees.
The rule change is not expected to go into effect until next year following a public comment period.
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