With talks of extending overtime pay for various businesses it sounds wonderful, but the question is whether or not the people will be able to fully understand exactly what President Obama is doing with this. It sounds great that more folks would be able to make overtime pay but is that really what is happening here?
An executive order was issued recently to let everyone know about this overtime ruling. This was released in a statement that more folks will be eligible for overtime pay under federal labor law. This means that salaried workers would be able to get paid more for their time when they are asked to stay and work longer hours. It sounds good but is it really true?
This could mean that those at the top are going to make more money anyhow while the other staff members don’t get to work extra to make extra income when they need it most. At a time when healthcare is getting steep, is this really an answer to prayer or is it a stick in the eye?
Today, I am going to share with you how extending overtime pay could work but the challenges we face with it and how it could be the one thing that breaks businesses and the nerves of the employees along the way.
Why Extending Overtime Pay Doesn’t Solve Anything
In a perfect world, if we could increase minimum wage and make sure that employees were able to get paid for more than 40 hours of work per week life would be a cake walk. Consider where we are as a country in this economy and where we stand in the global economy. It isn’t pretty. The idea that we can make it all right with this change is a day late and a dollar short.
The system does need to be fixed, but I am certainly not convinced that extending overtime pay in this fashion is the real answer. Raising minimum wage and then stating that overtime will be paid sounds great, but when you look at the challenges it presents the small and medium sized business owners end up with tied hands.
They find employees are no longer an investment but that they are an expense. It’s a vicious cycle just as the healthcare plan is also a vicious cycle. There are other countries using a similar healthcare system, but these countries are using a better model of it, and they are successful with it. It isn’t burdensome to them at all. They have found a way to make it work. I am not saying they are all perfect, but the way ours is set up at this moment simply isn’t working.
If we need more jobs, then causing employees to be more of an expense to a business simply isn’t going to work; it won’t work at all. Now does it make sense why we have to be so careful about how we approach this issue?
Extending Overtime Pay and the New Economy
There is no doubt a new economy coming, and if we continue to raise expenses and print money our dollar will fail. It’s already teetering and has been for some time. The day is coming when that will end and we will no longer have a choice but to look to a new currency. This is why individuals and businesses are buying gold. They know that gold is universal, and yes its currency!
Don’t doubt for a moment that a new economy is coming. It’s all going to happen quickly even though you may feel that we are in a lag time right now. Don’t wait until the last minute to prepare. Let this extending overtime pay issue open your eyes to what is really happening, so that you can start preparing for a long road ahead.
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