Posts Tagged ‘workplace’

Obama unveils overtime regs

“Well, they did it. The Obama Administration has proposed a new rule that everyone has to punch a time clock unless they are paid at least $921 a week. … This is a law written by salaried professionals telling younger and lower-paid workers that they have no right to be … salaried professionals.” [Coyote, who also has a few words on the arbitrariness of the Department of Labor’s threshold calculations, and on how DoL implicitly realizes that employers will adjust payroll practice to employees’ detriment, the biggest losers being upwardly mobile strivers.] Short-term benefits for some workers will melt away as employers redesign jobs to avoid overtime, reduce base pay, or lay off staff [Jeffrey Miron, Cato] “Unfortunately, it appears that the White House has given up on economic growth” [Douglas Holtz-Eakin] More: Iain Murray, National Review; Marianne Levine, Politico; W$J. My two cents earlier here and generally here.

Obama’s regulatory push

HeritageRegulationTiming

[Image: Heritage Foundation]

James Gattuso and Diane Katz at Heritage tote up some of the numbers on the Obama administration’s wave of regulation:

In its first six years, the Obama Administration imposed 184 major regulations on the private sector. That figure is more than twice the number imposed by the Bush Administration in its first six years….

Overall, the cost of new mandates and restrictions imposed by the Obama Administration now totals $78.9 billion annually. This is more than double the $30.7 billion in annual costs imposed at the same point in the George W. Bush Administration.

Much, much more is ahead, especially in areas like labor and employment, where the administration is pursuing a frankly unilateral course of legal changes that would never meet with approval if submitted as legislation to the present Congress.

Paid leave laws often backfire

Laws prescribing maternal and child care leave and benefits often backfire on their intended beneficiaries, reducing employer willingness to hire workers expected to take the benefits. That’s not exactly news to those familiar with the economic way of thinking; what’s noteworthy is that it’s something being reported in the New York Times, which cites a law in Spain that entitles parents to ask for reduced hours and has led to a reduced willingness to employ mothers, and a child-care mandate in Chile that has been followed by a decline in starting wages for women, as well as much noncompliance. “A broader analysis of 22 countries found that women were more likely to work when these types of policies are in place, but their jobs more likely to be ‘dead-end’ positions and less likely to be managerial posts.” America’s own Family and Medical Leave Act, often thought to be less burdensome because leave is unpaid, has not been exempt from the logic: “Women are slightly more likely to stay employed, but receive fewer promotions because of the law, according to research cited by the New York Times.” The Times says the “three American states — California, New Jersey and Rhode Island — that offer paid family leave finance it through employee payroll taxes,” which tends to make it a little more explicit that the cost of the benefits is coming largely out of compensation packages. [Nicole Kaeding, Cato; Claire Cain Miller, “The Upshot,” New York Times]

Labor and employment roundup

  • Loosen constraints on local and state deviation from the NLRA labor law model? Idea gathering force on right also draws some interest from left [Ben Sachs, On Labor, on James Sherk/Andrew Kloster proposal for right to work laws at city/county level]
  • Justice Alito dissents from Supreme Court’s denial of certiorari in Kalamazoo “employee buyer’s regret” case where asked-for transfer was later construed as retaliation [Jon Hyman]
  • NLRB’s franchise power grab could prove costly to small business [Diana Furchtgott-Roth, Connor Wolf]
  • A very different country: Supreme Court of Canada constitutionalizes a right of public employees to strike [On Labor]
  • Average full-time California municipal employee got 2013 compensation package of nearly $121,000 [Steven Greenhut]
  • Perfect, now let’s mandate sick day banking nationwide: “Montgomery [County] fire department has history of sick-day abuse among workers due to retire” [Washington Post]
  • Yet more unilateralism: Obama administration tightens regs on federal contractor sex discrimination [Roger Clegg]

Labor and employment roundup

  • Jury convicts Ironworkers Local 401 boss in union violence case [Philadelphia Inquirer, CBS Philly, earlier here, etc. on Quaker meetinghouse arson and other crimes] Pennsylvania lawmaker proposes to end unions’ exemption from laws defining crimes of harassment, stalking, threatening [York Dispatch; more on exemption of unions from these laws]
  • Emergent regime under federal law: if you’ve ever offered light duty to a disabled worker or returning injured worker, you’d better offer it to pregnant worker too [Jon Hyman]
  • Everything you know about company towns is wrong [Alex Tabarrok]
  • “The EEOC issues you’ll want to keep an eye on in 2015″ [Littler Mendelson via Tim Gould, HR Morning]
  • Sued if you do: employers struggle to navigate between government rules encouraging, penalizing hiring of applicants with criminal records [WSJ, paywall] “Watch Your Back: The Growing Threat of FCRA Background Check Class Actions” [Gregory Snell, Foley & Lardner]
  • “Nearly 30 Percent of Workers in the U.S. Need a License to Perform Their Job: It Is Time to Examine Occupational Licensing Practices” [Melissa S. Kearney, Brad Hershbein and David Boddy, Brookings via John Cochrane]
  • “The Effect of Mandatory Sick Leave Policies: Reviewing the Evidence” [Max Nelsen] “Popularity of Obama’s paid sick leave proposal depends on workers not realizing it ultimately comes out of their paychecks.” [James Sherk]

Labor and employment roundup

  • Obama wants Hill to force paid leave on employers. What, his rule-by-decree powers didn’t stretch that far? [RCP, USA Today] Department of Labor, using funds taxed from supporters and opponents alike, happy to act as frank advocate for legislation [its blog]
  • Employers brace for salaried-overtime mandate, wrought by unilateral Obama decree [KSL, earlier at Cato]
  • Related: “Employers To Face More Litigation In 2015 As Plaintiff Lawyers Swoop In” [Daniel Fisher on Gerald Maatman/Seyfarth Shaw report] Here come more NLRB decisions too [Tim Devaney, The Hill]
  • Krugman on minimum wage: two economists in one! [Donald Boudreaux, Cafe Hayek via Coyote, @Mike_Saltsman (“Min wage in France is closer to $12/hr US. But Krugman still being inconsistent bc he’s also backed $15 US minimum”)]
  • Five pro-de Blasio unions — SEIU/1199, teachers, hotel workers, doormen/building staff, CWA District 1 — help enforce NYC mayor’s agenda [NYDN]
  • Testimony: “worst-kept secret” in Philly ironworkers’ union was that you could get ahead through violent “night work” [Philadelphia Inquirer; earlier on Quaker meetinghouse arson here and here, related here]
  • Loads of new compliance burdens: “Changes in California Employment Law for 2015″ [Baker Hostetler] And it wouldn’t be California without many more employer mandates pending in legislature [Steven Greenhut]