SUMMER 2019

138
THE DISTRIBUTOR’S LINK
JIM TRUESDELL OVERTIME THRESHOLDS IN CROSSHAIRS AGAIN from page 36
In setting pay levels under the new rules, management
is allowed to use incentive programs and nondiscretionary
bonuses which make up to ten per cent of a worker’s
total compensation. The old Obama proposal would
have provided for periodic inflationary upgrades of the
levels but this is not the case in the current proposal.
There is a commitment to periodic review, but no specific
guarantee of increases. In fact, future changes would
again require a notice and comment procedure. Overtime
protections remain in place for critical public safety
employees to ensure there is no disruption when those
workers are called upon to put in long hours in the event
of emergencies. With salaries starting to rise and the job
market experiencing what are, in some cases, severe
worker shortages, it is clear that taking a hard line on
compensating hard working employees is not only an
unpopular stand but an unwise one too. Companies are
competing for talent to keep their businesses operating.
The Secretary of Labor, Alexander Acosta, has pointed to
his previous support for an upward revision and believes
now is the time to implement a reasonable change. It
would seem that most businesses are ready to accept
this and do see the need for it. But this is a far cry from
the radical disruption of compensation programs which
the 2016 rule caused as companies sought ways of
dealing with it just prior to its deadline.
It’s not just what the law requires as a minimum. A
conscientious and fair employer will not want to ask his or
her best employees to work long hours supervising other
people who are getting extra pay without seeing that the
supervisor himself or herself makes some extra money.
After all, they are losing some private and family time while
watching over the employer’s interests. Young managers
want to get ahead and they will often go the extra mile to
stand out and show what they can do. But management
can take unfair advantage of this zealousness and
there is no guarantee that the long hours and effort will
necessarily be rewarded if profits and results do not allow
for ample bonuses, commissions, and other rewards. It’s
just the right thing to do, as well as good business, to see
that these people are fairly compensated. The new DOL
proposal is not a draconian edict placing an unfair burden
on business. We should all support this move. In addition
to being the correct moral choice, it may forestall any
politically motivated massive wage hike which businesses
will not easily be able to absorb!
JIM TRUESDELL
SPHERE 1 20TH ANNUAL MEETING & CONFERENCE
MARCO ISLAND, FL - MAY 13-16, 2019