09 Aug DOL considering changing salary thresholds
One of the biggest problems with the recently attempted overtime rule change was the ridiculous wage standard. In an attempt to find a functional flat rate wage standard, the DOL simply imposed a single number, meant to operate equally in all States. Needless to say, such a standard was pure foolishness, as the cost of living, and therefore the standard wage, is different in different regions. And not just by a small amount, either.
Of course, such an idea is simply emblematic of how government employees think, which, in turn, is a product of them all living in Washington D.C.
And, yes, hyperbole is a legitimate form of speech.
So, what is the solution that the DOL is proposing, exactly?
Get out of the labor market, like they should do, as they haven’t a clue what they are doing? (For those who take umbrage with this accusation, I humbly submit the original DOL plan as exhibit A.)
No, that would be a rejection of their raison d’etre.
Instead, they are trying to establish a system of cost of living based pay scales, where the salary thresholds change based on where you live. Or, more accurately, they are considering the implementation of said system.
Of course, such an approach comes with issues of its own, such as the following:
What if a company incorporates in Delaware, moves its headquarters to New York, then opens a regional office in Denver, after which it hires a field supervisor working out of his home in Santa Fe to service a district stretching from El Paso, Texas, to Phoenix, Arizona. Then he spends half his time in the Denver office and half his time working out of his home. How do you measure his threshold? (Probably based on where his family lives, or just put the regional offices in charge of pay, and let them pay based on work that was actually done in their region. See? Random people can come up with ideas, too.)
Still, it’s better than the original idea of having one standard rate across the whole country.
Imagine how that would out for background check companies, guys who run background checks. Same as everyone else.