Managers overtime pay rules change

Salaried restaurant employees who work more than 40 hours in a week will be entitled to overtime pay as of Dec. 1 unless they earn more than $46,476 annually, the result of a rules change announced last night by the U.S. Department of Labor.

The threshold that will make management employees exempt from overtime requirements is roughly double the current level—the equivalent of $913 per week, versus $455, or $23,660 annually.

The level will automatically reset every three years to match “wage growth rates,” Labor said.

The steep hike is intended to instantly raise the income of about 4.2 million members of the middle class. It is not clear how many of the beneficiaries work in the restaurant business.

George Mills

I know a better way to raise the income of 4.2 million people. Make C** and director level pay taxed at 80% if their pay is over 200% of the average worker in the company.

Might as well just burn the constitution for all the good it does lately. maybe if we got all the pocket copies that congressmen are so proud to pass out, put them in boxes, we could heat a few houses next winter.

No problem. We pay managers hourly with OT after 40 hours. It is only fair.

On the other hand, my manger bonus is paid in $s per hour on the first 40 only. OT is bonus enough.

I’m guessing the best way around this is move managers over to hourly plus overtime , and keep it inline with their current compensation.

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Yup. Exactly what we did 12 years ago. Gives them some upside when things are crazy and they work a ton of hours and saves you money when they cut back when slower… all in all fair to everyone.

I really don’t see an issue.

$14 per hour with OT after 40 hours and assuming a 50 hour week is 40K per year.

We pay $12 with variable bonuses that probably average about $5.50 per hour on the straight time but range from $3.50 to $8.00 for the GM.

I used to make 28400, I was scheduled to work 45 hours, usually 50 as I would not leave my crew if they needed my help on a busy night. I was Required to do banking on my days off to easily put that over 50. This law is about 10 years too late for me, but I’m sure my former boss is annoyed by this law. Of course it motivated me to move on and do my own thing, but still it was a pretty miserable existence for the few years I worked there.

I have never been happy with salary pay. We also dumped it about 10 years ago. Our set up is similar to bodegahwy. Our GMs make about $17 to $20 hourly and bonus on top of that. Most of their bonus is tied to sales volume, so they drive sales like crazy. Their bonus check is usually more than their hourly check.