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Should IT Professionals Be Exempt From Overtime Regulations?
Paul Fernhout writes: Nick Hanauer is a billionaire who made his fortune as one of the original investors in Amazon. He suggests President Obama should restore U.S. overtime regulations to how they worked in the 1970s to boost the economy. Quoted by PBS NewsHour: "In 1975, more than 65 percent of salaried American workers earned time-and-a-half pay for every hour worked over 40 hours a week. Not because capitalists back then were more generous, but because it was the law. It still is the law, except that the value of the threshold for overtime pay — the salary level at which employers are required to pay overtime — has been allowed to erode to less than the poverty line for a family of four today. Only workers earning an annual income of under $23,660 qualify for mandatory overtime.
Many millions of Americans are currently exempt from the overtime rules — teachers, federal employees, doctors, computer professionals, etc. — and corporate leaders are lobbying hard to expand "computer professional" to mean just about anybody who uses a computer. Which is almost everybody. But were the Labor Department instead to narrow these exemptions, millions more Americans would receive the overtime pay they deserve. ... The twisted irony is, when you work more hours for less pay, you hurt not only yourself, you hurt the real economy by depressing wages, increasing unemployment and reducing demand and innovation. Ironically, when you earn less, and unemployment is high, it even hurts capitalists like me." If overtime pay is generally good for the economy, should most IT professionals really be exempt from overtime regulations?
Many millions of Americans are currently exempt from the overtime rules — teachers, federal employees, doctors, computer professionals, etc. — and corporate leaders are lobbying hard to expand "computer professional" to mean just about anybody who uses a computer. Which is almost everybody. But were the Labor Department instead to narrow these exemptions, millions more Americans would receive the overtime pay they deserve. ... The twisted irony is, when you work more hours for less pay, you hurt not only yourself, you hurt the real economy by depressing wages, increasing unemployment and reducing demand and innovation. Ironically, when you earn less, and unemployment is high, it even hurts capitalists like me." If overtime pay is generally good for the economy, should most IT professionals really be exempt from overtime regulations?
Exempt status used to be reserved for highly paid professionals (doctors, lawyers, managers).
At my last company, they made people work 72 hours a week for months. We had multiple heart attacks- and several divorces. They took advantage of the bad job market created partly by the fact that companies can work IT people 72 hours a week.
Anything over 45 hours a week should be overtime until you hit the top 20% of income or you are supervising, hiring, firing, and making pay decisions over at least a few other people.
Any work on actual holidays should be double time.
Conditions in many IT shops in the united states are horrific now.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
Thanks for the link, AC: http://www.economist.com/blogs... ... The Greeks are some of the most hardworking in the OECD, putting in over 2,000 hours a year on average. Germans, on the other hand, are comparative slackers, working about 1,400 hours each year. But German productivity is about 70% higher. ... So maybe we should be more self-critical about how much we work. Working less may make us more productive. And, as Russell argued, working less will guarantee âoehappiness and joy of life, instead of frayed nerves, weariness, and dyspepsia"."
"Working hours: Get a life
Interesting comments there like on work culture in South Korea, and I've just read the first couple comments of hundreds...
A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
I think the point is that currently the 50-60 hour work week is baked into a high salary. I think a lot of companies and employees would be better with a lower base salary but with overtime pay on top of that instead of fixed high salary. During lean times overtime could get cut back, making salary costs more flexible, and likely reducing layoffs as a result. Employees would likely work 8 hour days more often, and be more likely to have their productivity needs met rather than being expected to just burn more hours.
The current setup has a perverse incentive to work employees extra hours rather than hire the correct headcount. Anything over 40 hours of work is "free" for the company.
Companies that compete by expecting 60 hours of work from all employees necessarily create an unhealthy work environment, and defacto discriminate against workers with families.