- One more time President Obama seeks to buy Democratic votes with a free lunch by appealing to workers
- Promising more overtime pay, to go into effect in 2016
- Raises the threshold for overtime pay requirements
- Workers who earn salaries of $50,000 or less must be paid overtime for hours worked over 40 hours per week
- This prevents workers who put in extra hours on their own time to try to advance
- This could cause employers to reduce salaries to factor in overtime
- It will be harder for employers to change existing work agreements
- This will adversely affect workers on flexible schedules, such as those who work at home in 2016
- Employers will have to seek more control over workers’ schedules
- New law will disproportionately hurt women, the very constituency Democrats claim to protect
- Those who have variable workloads throughout the year will be adversely affected
- This law eliminates choice and increases costs, but it’s great politics
- Followup on Puerto Rico: Minimum Wage
- Puerto Rico is an example of the adverse effects of a minimum wage law that has devastated an economy
- Puerto Rico’s has more than 20% unemployment
- Puerto Rico labor force participation rate is 42-43%
- The minimum wage has priced out more than half of the labor force
- There is no entry level work in Puerto Rico
- If the minimum wage is so good, why does it not work in Puerto Rico?
- Puerto Rico is a real-life case study on the adverse effects of minimum wage laws
- Puerto Rico’s only advantage is its tax law for incoming businesses which will increase demand for labor
- Recent comments on my last podcast questioned my support for Puerto Rico
- I never advised buying Puerto Rican debt – I knew it was a problem
- It makes sense to move to Puerto Rico to take advantage of the new tax laws
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