Overtime Rules, Trudeau’s Elbow, and Proofreading

Here’s What You Need to Know

Earlier this week, the Obama administration announced a major new rule on how the federal government views overtime pay. The goal of the measure is to expand overtime protections to millions of American workers. But after a year of drafting, many suggest the final rule contains a series of unintended consequences that could lead those millions of American workers to lesser jobs at hourly wages with limited hours.

• What’s The Rule? The rule is set to go into effect December 1st and would double the salary threshold for workers automatically eligible for time-and-a-half overtime wages, bringing the salary at which workers would qualify for overtime benefits from $23,660 a year to $47,476 a year.
• Left-Wing Dissent: While the new rule has certainly taken flak from businesses, surprisingly to some, non-profits, including the Ralph Nader-founded U.S. Public Interest Research Group (PIRG), have been vocal opponents. They’ve argued the regulation will force organizations relying on small donations to “hire fewer staff and limit the hours those staff can work – all while the well-funded special interests that we’re up against will simply spend more.”
• Startup Trouble: Startups will be especially hurt by the change and have voiced their frustration. Alexander Pessala, a partner at the DC-based venture capital firm Middleland Capital, argued the new executive order will force startup executives to hire more contractors rather than full-time employees. Startups who pay their employees, at least partially, in stock options will also be forced to count more employees for overtime since the value of their stock is not measured in the salary figure used to determine who qualifies for the new overtime protection.
• Salary to Hourly: Historically, transitioning from an hourly wage to a salary has marked the upward trajectory of one’s career and progress toward the American Dream. Salaried workers also tend to receive more lucrative benefits and have more flexible work schedules. James Sherk, a labor economics expert, points out, “The administration’s new overtime regulations will effectively turn [salaried employees] into hourly employees.” The result being managers who worked their way up from hourly to salaried may find themselves going backwards with this new rule.

There’s still roughly five months before the rule comes into effect and a bill designed to override the overtime executive order has already been released by Congressional Republicans. But if the rule does end up in place, the President has already offered a silver lining to those workers whose hours may be cut: At least you’ll get to spend more time with your family.

News You Can Use

JUST-NOT SORRY
During a particularly tense session of the Canadian House of Commons last week, Prime Minister and self-proclaimed feminist Justin Trudeau, threw some elbow to usher along a vote. Unfortunately, that elbow landed squarely in the face of a female MP as Trudeau attempted to manhandle a Conservative lawmaker. Compounding the problem is the Prime Minister’s “unreserved” apology, which came with quite a few reservations. Just like children are taught in grade school, an apology with a “but” is no apology at all.

DOJ LAWYERS SENT BACK TO SCHOOL
In the process of litigating President Obama’s executive orders on immigration, several Justice Department attorneys misled the court about when the Department of Homeland Security would begin granting “deferred action” to undocumented immigrants whose children are citizens. Now, a federal judge has declared that the DOJ attorneys engaged in “intentionally deceptive” behavior while they were defending the executive order against a jointly filed lawsuit by 26 states. The judge ordered any DOJ lawyers wishing to practice in those states to attend annual ethics classes.

(PROOF)READING IS FUNDAMENTAL
The Texas Republican Party learned the value of verb usage when their recent party platform accidentally declared the majority of Texans were gay. In a section on sexual orientation, a line read, “Homosexuality is a chosen behavior that is contrary to the fundamental unchanging truths that has been ordained by God in the Bible, recognized by our nations founders, and shared by the majority of Texans.” Because the sentence uses the word “has” instead of “have,” it suggests homosexuality is approved by a higher power, the writers of our Constitution, and practiced by a majority of Texans. It seems safe to assume this is not the point the drafters intended to make and it’s yet another example of why you proofread before you go public: a golden rule of public affairs.

TERRY GUNS FOR CRIMINALS
Democratic Virginia Governor Terry McAuliffe took unilateral action last week to restore voting rights to over 206,000 felons. But perhaps he moved a little too fast, because the order also eliminated much of the oversight process for felons who seek to have their gun rights reinstated. Of course this wasn’t Gov. McAuliffe’s intention, and he later admitted, “I didn’t think it had anything to do with gun rights. I stayed away from that.” Such oversights are often addressed during the legislative debate that Gov. McAuliffe chose to forgo. No wonder his own legislature is suing him over this order.

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DNC’S ISRAEL FIGHT NIGHT
After being recently granted the opportunity to name five members of the Democratic National Convention’s platform committee, the Sanders campaign has announced their first two appointees. And, they’re likely to reignite the embarrassing 2012 debate over the party’s position on Israel. President of the Arab American Institute Jim Zogby and prominent Princeton professor Cornel West have both been longtime critics of U.S. policy toward Israel, and are likely to balk at any pro-Israel language put forth for the platform. Some close to Sanders claim he has no desire to debate the party’s Israel policy. But empowering the progressive wing of the Democratic Party makes it likely that foes of America’s closest ally in the Middle East will seek to influence the platform committee on the issue.

AIRBNB GOES GRASSROOTS
Airbnb has faced an onslaught of regulatory hurdles across the country, but they’re perfecting use of a powerful tool of persuasion to influence government decision makers: their users. With the company’s future on the line in various regulatory fights, the company has mobilized users who offer their homes up for rent on the site and transformed them into a grassroots lobbying machine complete with prepared talking points, targeted legislators, and matching t-shirts. As companies like Airbnb, who already have easy access to massive user bases, continue to face regulatory pressure, smart startups are going to be able to structure these ready-made grassroots activist armies.

MAINE WORKS
Controversial welfare reform measures put in place by Maine’s Governor Paul LePage have begun to pay off. A new report from the state’s Department of Health and Human Services and Office of Policy Management shows the new welfare process has led to increased employment, higher wages, and decreased dependency on state programs. Many suggest that more data in the coming years will only show more success. As Josh Archamault, a senior fellow with the Foundation for Government Accountability, wrote, “Congress should learn from these successes and give states better tools to re-emphasize work across the board – not just in food stamps, but in all welfare programs.

Mark Your Calendars