March 25, 2014

James Sherk

James Sherk

New government regulations intended to grant overtime pay to more salaried workers could backfire, Heritage Foundation labor expert James Sherk warns.

For one thing, the change probably wouldn’t increase a worker’s take-home pay. Many employers compensate for increased overtime by simply lowering their workers’ base pay to keep total compensation intact.

The regulations would also “effectively turn millions of salaried employees into hourly workers,” Sherk points out, since businesses would be forced to track precise hours worked. And this could mean that flex time, working from home, and other modern business arrangements would be off-limits.

“Most employers deny overtime-eligible workers this flexibility” to work remotely, Sherk writes in the Bradenton Herald. “They must track time worked or risk expensive lawsuits over back pay.”

Do you think government should impose these regulations on millions of workers?

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