WEBVTT - Bloomberg BNA's Penn on DOL Ruling on Overtime Threshold(Audio)

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<v Speaker 1>You're listening to Taking Stock with Pim Box and Kathleen

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<v Speaker 1>Hayes on bloom Bird Radio. So as Charlie just deported,

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<v Speaker 1>markets fixated on the minutes of the fed's last meeting,

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<v Speaker 1>which have really reopened the door to an interest rate

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<v Speaker 1>increase in June. FED watching inflation wages the labor market.

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<v Speaker 1>I bet they're watching a story out today from Bloomberg

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<v Speaker 1>b n A. We're joined by Ben Penn, labor reporter

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<v Speaker 1>for b NA. He joins us from Arlington, Virginia to

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<v Speaker 1>talk about the Labor Department's final overtime rule that's going

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<v Speaker 1>to double the salary threshold for overtime exemption, effective in December,

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<v Speaker 1>and it's going to make a big difference for people

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<v Speaker 1>who are classified as a managers. Ben, welcome to taking Stock. Hi,

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<v Speaker 1>thanks for having me. Well, this has been in the

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<v Speaker 1>works for a while. In a nutshell, what is the

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<v Speaker 1>Department of Labor going to start enforcing companies to do? Basically,

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<v Speaker 1>the salary threshold for overtime exemption the words the level

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<v Speaker 1>at which below which workers are automatically qualified for a

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<v Speaker 1>time and a half pay when they work more than

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<v Speaker 1>forty hours per week UM. That level has doubled. So

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<v Speaker 1>currently um there that it is about twenty three thousand

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<v Speaker 1>and change and it's going to go up to UH

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<v Speaker 1>five hundred UM. So what you know, it's interesting you

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<v Speaker 1>ask about Department of Labor Enforcement because right now they

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<v Speaker 1>they are focused on the compliance assistance phase UM, where

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<v Speaker 1>they're you know, doing an aggressive effort to reach out

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<v Speaker 1>to UH, to various forms of employers that are impacted

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<v Speaker 1>by this rule. But yes, UH, technically on December one,

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<v Speaker 1>that is when the wage in our division investigators can

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<v Speaker 1>begin enforcing the rule. And and they imagine there's going

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<v Speaker 1>to be millions of employees who previously we're ineligible for

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<v Speaker 1>over time who now can begin receiving it. But does

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<v Speaker 1>the new rule mean that the people who are eligible

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<v Speaker 1>will now start earning over time pay if they work

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<v Speaker 1>more than forty hours a week? Yeah, that that is

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<v Speaker 1>correct if they you know, in some cases, it won't

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<v Speaker 1>necessarily lead to that, you know. You one of the

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<v Speaker 1>arguments that that the rules opponents make is that well, um,

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<v Speaker 1>you know, this is money that that these companies can't afford,

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<v Speaker 1>and they're going to be um, you know, reducing their

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<v Speaker 1>hours capping them at forty. Of course, then the administration

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<v Speaker 1>would say that's another benefit of the rule that you know,

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<v Speaker 1>it allows workers to have more time with their families

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<v Speaker 1>and it could lead to job creation that way. So

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<v Speaker 1>I guess that, yes, you know, if you're if you're

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<v Speaker 1>a manager, you're expected to uh, you know, put in

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<v Speaker 1>the extra hours, not punch the clock. But the Department

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<v Speaker 1>of Labor sees this as wrongheaded because if you're you know,

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<v Speaker 1>if you're making something three thousand a year in this

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<v Speaker 1>day and age, is not such the kind of money

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<v Speaker 1>that would justify people working you that hard. So this

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<v Speaker 1>is the reason for the change. Yeah. The the argument

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<v Speaker 1>from the administration has been that, uh, you know, in

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<v Speaker 1>in the UH that this is a rule under the

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<v Speaker 1>Fair Labor Standards Act that is outdated and it's allowed companies,

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<v Speaker 1>especially in the retail and service hospitality sectors, to classify

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<v Speaker 1>workers give them job titles of assistant managers when in

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<v Speaker 1>reality they're spending a large portion of their day mopping

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<v Speaker 1>the floors, working the cash register, and maybe they're supervising

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<v Speaker 1>an employee for US for for a few hours as well.

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<v Speaker 1>But um to uh, to d O L and and

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<v Speaker 1>to President Obama who directed this, uh, this rule change

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<v Speaker 1>in then you know that's unfair and this is a

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<v Speaker 1>big way to provide a race for the middle class.

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<v Speaker 1>Thank you very much for taking time to share this

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<v Speaker 1>information with us. En Penn is a labor reporter for

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<v Speaker 1>Bloomberg b NA. He's based in Arlington, Virginia. Of course,

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<v Speaker 1>the Washington metro area home to a Bloomberg ninety one

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<v Speaker 1>and one oh five point seven h D two. Bloomberg

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<v Speaker 1>b n A is a wholly owned subsidiary of Bloomberg,

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<v Speaker 1>a leading source of legal, regulatory and business information for professionals.