The Next Labor Battle? Overtime
Jonathan Adler was quoted in QSR magazine regarding the impact of updated Department of Labor overtime regulations on the restaurant industry. The new rule expands eligibility for overtime pay to individuals earning $47,476 or less annually, increasing the salary threshold from the current limit of $24,000. Adler told the publication that the change should encourage all restaurant owners to conduct an audit of their workforce. “This is an opportunity to do some risk management,” Adler said. “This is something that people in the restaurant industry don’t make enough time for: planning ahead.” He recommends that restaurants reevaluate their staff in three steps: 1) identify which employees the rule impacts; 2) decide whether to reclassify certain salaried employees as hourly; and 3) consider whether to reduce staff or invest in automation that requires fewer employees.