Growth Club
1851 Growth Club
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Restaurant Business: How Franchisors Plan to Tackle New Overtime Ruling
New mandate, which take effect December 1st, presents new challenges to national restaurant brands.
With the upcoming federal over time rule mandate taking effect on December 1, 2016, restaurant operators are preparing for the change and its side effects.
Restaurant Business spoke with many brand leaders who are raising managers' salaries above the new $47,476 cap for overtime eligibility or converting salaried roles to hourly.
At Famous Toastery, a growing brand with 15 locations, the regulations affect more than half of its corporate employees and their positions will become hourly. To help accurately track hours, the brand is considering integrating fingerprint technology into its POS system.
“We will have to make very clear that if you don’t check in and you don’t check out, you don’t get paid,” Famous Toastery CEO and founder Robert Maynard told Restaurant Business.
At Buffalo Wings & Rings, brand leaders will increase manager salaries that are close to the threshold, and restructure managers who are around the $30,000-per-year range into hourlies, Buffalo Wing & Rings CEO Nader Masadeh told Restaurant Business.
MOOYAH Burgers, Fries & Shakes* is pushing all general managers above the cap, however, assistant managers will become hourly at corporate units.
“It gets complicated with assistant managers,” MOOYAH COO Mabry told Restaurant Business. “If you have some people with the title manager and they work an hourly wage, it has the potential to dishearten them.”
To avoid that feeling, the brand plans to support assistant managers with continuing education and mentor relationship to boost the pathway to general manager roles.
Click here to read the full story.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
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