Professional Service Agreement

Obama to issue Executive Order Thursday 3/13 Providing OT to Salaried Exempt Positions

March 12, 2014

In a very shocking and disturbing report, Obama plans to expand overtime to many current salaried exempt employees amending a law that has been in place since 1938! As is if economic pressures, higher corporate taxes, Obamacare and global challenges haven't placed enough stress on business and industry, now employers must plan on significant labor cost increases via paying overtime to some current salaried exempt employees.

"I have a pen and a phone." True to his word, Obama plans to sidestep the law and by a simple signature, order the U. S. Department of Labor to expand overtime pay requirements, resulting in overtime eligibility for millions of salaried workers.

Details of the directive will be announced on March 13. SESCO will provide a thorough explanation of the Executive Order and how it may impact your pay practices and labor costs as well as solutions to address the order.

Frankly this is just another decision that will ultimately affect the employee (as does Obamacare) as employers will manage around the Order to include:

1) Placing salaried employees on an hourly rate with overtime and only paying salaried workers when they work-no more guaranteed salaries when working less than 40 hours.

2) Depressing wages to offset overtime requirements

3) Utilizing the Fluctuating Workweek method of payment

4) Reducing benefits to offset cost

5) Utilizing more Part-time schedules

5) Ultimately raising prices, causing inflation in the retail market (consumer/employee pays more)

SESCO will be available for comment after the Executive Order has been issued. In the mean time contact us if you have any questions.