More American workers may qualify for overtime pay this year. Under the current enforced law, only employees with a salary below $455 every week are eligible for overtime pay if they work more than 40 hours a week. The Notice of Proposed Rulemaking announced by the U.S. Department of Labor may make that happen.
What it Can Do
The proposal seeks to update the salary threshold. That would mean more working Americans bringing home bigger wages. With more job openings than job seekers, the NPRM can provide the right solutions in the hospitality market.
What Hotel Owners Say
On the other end of the spectrum, though, hotel company executives are worried that the new overtime rule may end up bringing up results opposite to what the federal government intended. Instead of boosting employment and growing wages, it could hurt employees and employers instead.
Why it’s a Bad Move
It’s a significant increase on the part of hotel company officials and may force hotels to reconsider their staffing needs and levels. It can also backfire on employees who are willing to go above and beyond the scope and responsibilities of their work. The overtime pay may limit the tasks they can undertake, especially if it would mean that the company will need to pay them for those overtime hours. Employees will need to work with those restrictions in place.
What Can Be Done
There are several options bandied around. Some suggest increases in the employee’s salary, though, this will need to be balanced out with a heavier workload. This move will allow companies to eliminate lower-level positions. But that runs the risk of overloading high-level staff. Another option is to ask which management positions are necessary. Eliminating several positions and distributing the workload across the board can be a viable way to ensure there’s less impact on the business.
How Property Owners Can Win
If you are thinking about investing in a hotel, then this will certainly impact your decisions regarding the property, it’s growth, and its future. If you are looking for a hotel business for sale that you want to invest in, you and your management team will need to come up with a suitable workaround solution or arrangement, should the proposal pass into a law. Companies like the NewGen Advisory can help you find the hotel business for sale that’s ideal for your investment plans.