Worcester Business Journal

20 Worcester Business Journal • July 20, 2015 www.wbjournal.com P resident Obama has launched a debate over who deserves overtime pay with his proposal to extend overtime protections to nearly 5 million Americans, covering all salaried workers who make up to about $50,400 a year. That's up drastically from the current cap of $23,660. But opponents believe the proposal would force employers to reduce overtime hours and perhaps cut jobs, or even add jobs as a way to avoid paying time and a half to those who work more than 40 hours a week. In our poll for the week of July 6, that's what most said they would do. What would you do if the federal government allows more workers to become eligible for overtime pay? Pay more overtime? Most frown on Obama plan Best Advertising Agency Best Web Design Firm Proud Winner of Two 2015 Best of Business Awards COMMENTS: Join the WBJ's LinkedIn discussion group by scanning the code to the left on your smartphone. To scan the code, you need the NeoReader. Visit get.neoreader.com to download it onto your phone. Want to participate in the conversation? I n 10 of the last 11 years, Massachusetts has had a sales tax "holiday" weekend in August, when goods priced up to $2,500 and normally subject to the state's 6.25-percent sales tax levy could be purchased tax free. Its purpose is to boost the retail industry, yet the issue always seems to come down to weeks or even days before that weekend when the legislature gets around to approving it. But rather than having to wait for approval each year on Beacon Hill, or the "opt in" approach, what if lawmakers were to automatically allow an annual tax-free weekend unless it were to vote otherwise? In last week's poll, about five of every eight voters said the holidays should be scuttled and the sales tax lowered. How should the Massachusetts legislature handle future sales tax "holidays?" Forget sales tax holidays; just lower the levy COMMENTS: F L A S H P O L L T A L K B A C K Reduce or eliminate overtime work. 48% "If the sales tax is not lowered permanently (which it should be), then I would make the sales tax holiday permanent and raise the cap." Just pay the overtime if we need it to get the work done. 32% Same as now: vote every year (opt in) 16% "I think it's fair to pay overtime for over 40 hours, and we have always done so." Other 11% Forget about the holidays and lower the sales tax. 62% "Sales tax holidays do not promote economic growth or significantly increase consumer purchases. The evidence shows that they simply shift the timing of purchases. Some retailers raise prices during the holiday, reducing consumer savings." "It really isn't the biggest savings on earth for people, but just the thought of saving the sales tax promotes more sales." WATER OVER SUN, WIND Gov. Charlie Baker's recently filed bill to boost the state's supply of hydropower (Baker bill would boost hydropower, July 9) won this endorsement from a reader. "It's about time someone takes a common-sense approach to renewable power. Solar and offshore power are too expensive and unreliable." Online reader mverreault OBAMA'S OVERTIME PROPOSAL A proposed new rule governing overtime pay will mean bigger paychecks for up to 5 million workers, according to the Obama administration. But business groups, along with Republicans in Congress, believe the proposal would force employers to reduce overtime hours and perhaps cut jobs. We asked members of our LinkedIn group what they thought of the idea. "What right does the federal government have in telling someone how they may be compensated for their labor?" LinkedIn group member Jim Pond "I think this is great. For a long time, retailers especially have been taking advantage of their assistant managers and store managers. Especially on holidays, only the salaried workers are put on the schedule, and are forced to work." LinkedIn group member Anita Wos "Eliminate overtime work of all kind. Have no salaried employees who make less than $50,401, but make them all hourly employees." "Many companies would pay the overtime, if needed, to get the work done. But they would also look for other places to cut to offset the added salary expense." 5% 4% Add more jobs to avoid paying overtime. Raise workers' salaries above the new level. 12% Make them permanent unless lawmakers vote otherwise. (opt out) Make them permanent but lower the $2,500 price cap. 1% 9% Make them permanent and raise the price cap.

• Cover