Tags: Puzder | Obama | overtime | order

CKE Restaurants CEO Puzder Rips Obama Overtime Order

By    |   Tuesday, 25 March 2014 08:49 PM

President Barack Obama made a mistake in ordering an expansion of the class of employees who can receive overtime pay, asserts Andy Puzder, CEO of CKE Restaurants, which includes Carl's Jr. and Hardee's.

Now an employee who earns more than $24,000 a year and is part of management can't receive overtime.

"The president wants to raise this salary threshold, perhaps as high as $50,000, demoting entry-level managers to glorified crew members by replacing their incentive to get results with an incentive to log more hours," Puzder writes in The Wall Street Journal.

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Inequality is a major issue now, he says. "Increasingly, Americans don't have the career opportunities most took for granted a decade ago. Many are withdrawing from the labor force, frustrated because they're unable to find a job and lured to depend on government rather than on themselves."

But Obama's order doesn't help, Puzder writes. "Rewarding time spent rather than time well
spent won't help address this problem," he says. "Workers who aspire to climb the management ladder strive for the opportunity to move from hourly-wage, crew-level positions to salaried management positions with performance-based incentives."

The gains achieved in becoming a manager make up for the loss in overtime pay, Puzder says.

Not everyone agrees with him.

"Though there is an unmistakable political element to Obama's plan, it makes good sense," according to a USA Today editorial. "Unlike his bid to raise the minimum wage, . . . the proposal on overtime is less a bid to mandate higher wages than to apply basic rules of fairness."

The salary level below which workers must receive overtime has been raised only once in the past 39 years, the editors say.

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President Barack Obama made a mistake in ordering an expansion of the class of employees who can receive overtime pay, asserts Andy Puzder, CEO of CKE Restaurants, which includes Carl's Jr. and Hardee's.
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Tuesday, 25 March 2014 08:49 PM
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