1 00:00:02,040 --> 00:00:05,520 Speaker 1: You're listening to Taking Stock with Pim Box and Kathleen 2 00:00:05,600 --> 00:00:09,520 Speaker 1: Hayes on bloom Bird Radio. So as Charlie just deported, 3 00:00:09,520 --> 00:00:12,080 Speaker 1: markets fixated on the minutes of the fed's last meeting, 4 00:00:12,119 --> 00:00:15,520 Speaker 1: which have really reopened the door to an interest rate 5 00:00:15,560 --> 00:00:19,000 Speaker 1: increase in June. FED watching inflation wages the labor market. 6 00:00:19,040 --> 00:00:23,000 Speaker 1: I bet they're watching a story out today from Bloomberg 7 00:00:23,079 --> 00:00:26,160 Speaker 1: b n A. We're joined by Ben Penn, labor reporter 8 00:00:26,239 --> 00:00:29,000 Speaker 1: for b NA. He joins us from Arlington, Virginia to 9 00:00:29,040 --> 00:00:32,839 Speaker 1: talk about the Labor Department's final overtime rule that's going 10 00:00:32,880 --> 00:00:37,600 Speaker 1: to double the salary threshold for overtime exemption, effective in December, 11 00:00:38,360 --> 00:00:41,280 Speaker 1: and it's going to make a big difference for people 12 00:00:41,320 --> 00:00:46,240 Speaker 1: who are classified as a managers. Ben, welcome to taking Stock. Hi, 13 00:00:46,320 --> 00:00:47,879 Speaker 1: thanks for having me. Well, this has been in the 14 00:00:47,880 --> 00:00:51,599 Speaker 1: works for a while. In a nutshell, what is the 15 00:00:51,640 --> 00:00:59,000 Speaker 1: Department of Labor going to start enforcing companies to do? Basically, 16 00:01:00,120 --> 00:01:05,039 Speaker 1: the salary threshold for overtime exemption the words the level 17 00:01:05,440 --> 00:01:09,440 Speaker 1: at which below which workers are automatically qualified for a 18 00:01:09,600 --> 00:01:11,160 Speaker 1: time and a half pay when they work more than 19 00:01:11,160 --> 00:01:14,120 Speaker 1: forty hours per week UM. That level has doubled. So 20 00:01:14,480 --> 00:01:18,399 Speaker 1: currently um there that it is about twenty three thousand 21 00:01:18,480 --> 00:01:20,320 Speaker 1: and change and it's going to go up to UH 22 00:01:21,760 --> 00:01:25,440 Speaker 1: five hundred UM. So what you know, it's interesting you 23 00:01:25,480 --> 00:01:29,960 Speaker 1: ask about Department of Labor Enforcement because right now they 24 00:01:30,880 --> 00:01:34,440 Speaker 1: they are focused on the compliance assistance phase UM, where 25 00:01:34,520 --> 00:01:38,760 Speaker 1: they're you know, doing an aggressive effort to reach out 26 00:01:38,800 --> 00:01:43,680 Speaker 1: to UH, to various forms of employers that are impacted 27 00:01:43,680 --> 00:01:46,920 Speaker 1: by this rule. But yes, UH, technically on December one, 28 00:01:47,120 --> 00:01:51,440 Speaker 1: that is when the wage in our division investigators can 29 00:01:51,640 --> 00:01:55,560 Speaker 1: begin enforcing the rule. And and they imagine there's going 30 00:01:55,600 --> 00:01:59,880 Speaker 1: to be millions of employees who previously we're ineligible for 31 00:02:00,000 --> 00:02:04,120 Speaker 1: over time who now can begin receiving it. But does 32 00:02:04,160 --> 00:02:06,800 Speaker 1: the new rule mean that the people who are eligible 33 00:02:07,120 --> 00:02:09,839 Speaker 1: will now start earning over time pay if they work 34 00:02:09,919 --> 00:02:14,400 Speaker 1: more than forty hours a week? Yeah, that that is 35 00:02:14,440 --> 00:02:18,120 Speaker 1: correct if they you know, in some cases, it won't 36 00:02:18,200 --> 00:02:21,120 Speaker 1: necessarily lead to that, you know. You one of the 37 00:02:21,200 --> 00:02:26,079 Speaker 1: arguments that that the rules opponents make is that well, um, 38 00:02:26,160 --> 00:02:29,400 Speaker 1: you know, this is money that that these companies can't afford, 39 00:02:29,400 --> 00:02:31,880 Speaker 1: and they're going to be um, you know, reducing their 40 00:02:31,919 --> 00:02:35,200 Speaker 1: hours capping them at forty. Of course, then the administration 41 00:02:35,240 --> 00:02:39,160 Speaker 1: would say that's another benefit of the rule that you know, 42 00:02:39,360 --> 00:02:41,560 Speaker 1: it allows workers to have more time with their families 43 00:02:41,600 --> 00:02:44,960 Speaker 1: and it could lead to job creation that way. So 44 00:02:45,000 --> 00:02:46,639 Speaker 1: I guess that, yes, you know, if you're if you're 45 00:02:46,680 --> 00:02:51,320 Speaker 1: a manager, you're expected to uh, you know, put in 46 00:02:51,320 --> 00:02:54,720 Speaker 1: the extra hours, not punch the clock. But the Department 47 00:02:54,720 --> 00:02:58,680 Speaker 1: of Labor sees this as wrongheaded because if you're you know, 48 00:02:58,720 --> 00:03:02,000 Speaker 1: if you're making something three thousand a year in this 49 00:03:02,120 --> 00:03:05,440 Speaker 1: day and age, is not such the kind of money 50 00:03:05,480 --> 00:03:07,760 Speaker 1: that would justify people working you that hard. So this 51 00:03:07,840 --> 00:03:11,520 Speaker 1: is the reason for the change. Yeah. The the argument 52 00:03:11,520 --> 00:03:14,480 Speaker 1: from the administration has been that, uh, you know, in 53 00:03:14,480 --> 00:03:17,840 Speaker 1: in the UH that this is a rule under the 54 00:03:17,840 --> 00:03:22,079 Speaker 1: Fair Labor Standards Act that is outdated and it's allowed companies, 55 00:03:22,160 --> 00:03:27,760 Speaker 1: especially in the retail and service hospitality sectors, to classify 56 00:03:28,240 --> 00:03:31,960 Speaker 1: workers give them job titles of assistant managers when in 57 00:03:32,080 --> 00:03:35,400 Speaker 1: reality they're spending a large portion of their day mopping 58 00:03:35,400 --> 00:03:39,360 Speaker 1: the floors, working the cash register, and maybe they're supervising 59 00:03:39,440 --> 00:03:42,720 Speaker 1: an employee for US for for a few hours as well. 60 00:03:42,760 --> 00:03:46,000 Speaker 1: But um to uh, to d O L and and 61 00:03:46,080 --> 00:03:49,960 Speaker 1: to President Obama who directed this, uh, this rule change 62 00:03:50,000 --> 00:03:54,000 Speaker 1: in then you know that's unfair and this is a 63 00:03:54,000 --> 00:03:56,320 Speaker 1: big way to provide a race for the middle class. 64 00:03:56,920 --> 00:03:58,960 Speaker 1: Thank you very much for taking time to share this 65 00:03:59,040 --> 00:04:01,800 Speaker 1: information with us. En Penn is a labor reporter for 66 00:04:01,920 --> 00:04:06,400 Speaker 1: Bloomberg b NA. He's based in Arlington, Virginia. Of course, 67 00:04:06,920 --> 00:04:10,760 Speaker 1: the Washington metro area home to a Bloomberg ninety one 68 00:04:10,760 --> 00:04:14,120 Speaker 1: and one oh five point seven h D two. Bloomberg 69 00:04:14,160 --> 00:04:17,000 Speaker 1: b n A is a wholly owned subsidiary of Bloomberg, 70 00:04:17,240 --> 00:04:21,960 Speaker 1: a leading source of legal, regulatory and business information for professionals.