NRA Against Obama’s Restaurant Overtime Proposal

NRA Against Obama’s Restaurant Overtime ProposalRestaurant wages, particularly those in the fast food industry, have long been a topic of concern among the American workforce.  With recent proposition to overhaul overtime pay regulations, the National Restaurant Association (NRA) expresses deep concern over the potential negative impacts of this proposal. During this potentially industry altering change, be sure to safeguard your restaurant with a TN Employment Practices Liability policy.

President Obama stated that he wishes to make more Americans eligible for overtime pay. As it stands, the annual income ceiling figure is $23,660 a year and Obama wants to bump it up to $50,440 per year to be eligible. It is common knowledge for industry professionals that many managers, assistant managers, and even office workers are often expected to work 50 or 60 hours per week and not receive a dime of overtime compensation.

However, the National Restaurant Association argues that this overhaul will cause a series of negative consequences for the restaurant industry. For example, an NRA statement said “These proposed rules have the potential to radically change industry standards and negatively impact our workforce. As with previous policies put forth by this Administration, we are deeply concerned with the outcome this process with have on the employer community and our employees.” As such, they fear the overtime wage increase will diminish the motivation to work hard for performance-based incentives, which is a huge appeal to the restaurant industry.

Furthering supporting their case, the NRA cited that 80% of owners and 97% restaurant managers started in low wage positions and gradually moved up over time based on these incentives. If the new proposed changes are approved, the NRA fears that employee mobility will be diminished severely.

At Barnes Insurance Agency, we have over 50 years of experience in providing custom insurance solutions for the restaurant industry. With over 50 years of experience in the industry, we have ample knowledge of the risks involved with operating a restaurant. For more information about how we can serve you, contact us today at (866) 733-5424.



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