Obama Labor Department: Regulating Us Into Suppressed Wages

Last week, President Obama’s Labor Department announced changes into overtime rules for salaried employees. Consider this another case of Obama regulations falling on those progressives proclaim their policies help:

As colleague Jeffrey Miron observed in this space on Wednesday, the notional paycheck benefits to employees reassigned to hourly status are likely to prove temporary, since employers have many ways over the medium term of dodging a permanent upward jump in payroll costs: they can forbid employees to clock more than 40 hours a week, lay off those who regularly do so, cut back on non-cash perks for the salaried, and so forth, not to mention suppressing the level of base pay itself.

That’s right, suppressed wages:

Moreover, most studies find that employers offset all or almost all of the cost of overtime premiums with lower base wages. One recent study found that employees paid for 80 percent of the cost of overtime coverage through lower regular wages.

Keep that in mind when you hear left-wing candidates talk about their supposed “support” for the middle class.



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