Like many other employers across the country, the hotel industry reacted this week to the Department of Labor’s final rule, which will double the pay threshold under which salaried workers must be eligible for overtime, to $47,476 a year. While the new overtime rule is intended to bring a meaningful boost to many workers’ wallets, some hotel executives believe it could hurt both employers and employees. The new rule could prompt many hoteliers to rethink staffing levels or end some of the perks offered to management staff, Hotel News Now reports. If a company decides to increase an employee’s salary above the threshold, that employee may need to take on a heavier workload to compensate for lower-level positions the company eliminates. Other companies may opt to hire two people to do the same job for minimum wage. The rule is slated to take effect Dec. 1. From there, the threshold will be adjusted every three years. To read more, click here.
