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Wall Street Journal: Labor Department Expected to Make Millions More Eligible for Overtime
Scott Gittrich, Founder and President of Toppers Pizza, weighs in on proposed overtime rule changes.
Photo Credit: Gil C / Shutterstock.com
The Obama administration’s initiative to raise the number of hours enabling overtime eligibility for American workers is causing a stir within small businesses throughout the United States, particularly in the franchise industry where franchisors are awaiting the official proposal from the Labor Department to determine what impact that will have on the franchisee-owned locations in their systems.
The anticipated proposal would nearly double the amount that a salaried employee could make in a week and still qualify for overtime compensation, from the current $455 to $970, and would extend overtime protection to roughly five million more employees. President Obama discussed the issue in a recent op-ed column in the Huffington Post.
The Wall Street Journal reported on the proposed overtime rule change, and the reaction from business owners that the new rule could curtail job growth in a slowly expanding economy.
“The rules are going to force more people into part-time work, and we’re already seeing that with Obamacare,” Scott Gittrich, Founder and President of Toppers Pizza, told the Wall Street Journal.
Gittrich added that Toppers would need to adjust schedules and base wages to contend with the increased labor costs tied to the overtime extension. Similarly, White Castle told the WSJ that they estimated costs between 8 and 12 million as a result of the rule change.
The unveiling of the proposed rule will be followed by a comment period that is expected to last months.
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
