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Restaurant group wants feds to revamp proposed overtime policy proposal

The proposed new federal overtime rules are not sitting well with the National Council of Chain Restaurants.

July 1, 2015

The proposed new federal overtime rules are not sitting well with the National Council of Chain Restaurants and the organization is calling on the federal government to enact a policy that doesn’t hurt salaried employees.

The rulemaking would extend overtime protections to nearly 5 million white collar workers within the first year of its implementation, according to the U.S. Department of Labor.

“For example, a convenience store manager, fast food assistant manager, or some office workers may be expected to work 50 or 60 hours a week or more, making less than the poverty level for a family of four, and not receive a dime of overtime pay. Today’s proposed regulation is a critical first step toward ensuring that hard-working Americans are compensated fairly and have a chance to get ahead,” states DOL announcement on the proposal.

But the restaurant council sees only negative impact from the overtime rule change.

 “The Obama Administration’s overtime proposal is punitive to salaried employees in restaurants. The regulations being changed today were modernized in 2004 to specifically recognize the unique roles that supervisors in restaurants must perform and the exceptional career advancement opportunities that restaurants provide to hourly workers,” said National Council of Chain Restaurants Executive Director Rob Green in a statement. 

“If allowed to stand, the one-size-fits-all proposal issued today will harm chain restaurant managers’ career advancement, eliminate key management positions and have a negative impact on customer service and workplace morale. We need policy that encourages workplace advancement and this is a step in the wrong direction. On the heels of a recession and high unemployment, we shouldn’t be stifling opportunities for career growth,” said Green.