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Updates


ICYMI - DOL Overtime Rule Ignores Concerns of Franchise Businesses; Will Demote Thousands

By: Ryan Kennedy

ICYMI

On Tuesday, May 17, the Department of Labor ignored the concerns of franchise business and independent, local owners by more than doubling the current threshold for overtime pay for employees working more than 40 hours per week from $23,660 to $47,476. In so doing, the DOL has effectively demoted thousands of working Americans from salaried careers to hourly pay. The franchise business community was clearly disregarded during the rulemaking process, but as with other Administration efforts in overregulation, small business owners must now react to save their local businesses.

See what IFA and business owners are saying about the new overtime rule…

“Far from ‘giving America a raise,’ the new overtime rule will compel many franchise businesses to reduce their managers’ take-home pay simply to comply with the extreme new salary level. The rule is unfair to employees who will need to be reclassified from exempt to non-exempt, and thus effectively demoted. The Administration irresponsibly failed to conduct any economic analysis of this rule’s impact on myriad stakeholders and millions of employees will experience reduced take-home pay, opportunity and flexibility in the workplace as a consequence of the Administration’s actions.”

- Robert Cresanti, CFE, President & CEO of IFA, Washington, DC
International Franchise Association, May 19, 2016

"My people aren’t just numbers to me. They’re my friends. I treat them well. I have dedicated managers and they want to come in and do the job they’re paid to do, without watching the clock."

-Randy Bradley, Burger King Franchisee, Ottumwa, IA
Des Moines Register, May 19, 2016

"Salary is a great balancing mechanism over a pay period. Now this is one more layer of stress added to the business of running a business right now. It's really hard."

- Tamara Kennedy, Taco Johns Franchisee, Indianola, IA
Des Moines Register, May 19, 2016

"Guests will be extremely frustrated when they ask, 'where's the manager,' and a worker says, 'he's not here.'"

-Chad Brooks, Burger 21 & Qdoba Franchisee, Pittsburgh, PA
Associated Press, May 18, 2016

2016-05-20 13:05:27

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