I've been thinking
about government regulation a lot lately.
When a big portion
of your business is regulated by the government, you tend to do that. This time
it was brought on by the new overtime exemption laws taking place later this
year.
The principle of the
law is to protect people, which is admirable. Make sure "folks" (as
Obama calls us) get compensated fairly for a hard day's work.
What's not to love
about that?
They are updating
laws that were more than 40 years old. They weren't protecting people anymore
like they were supposed to.
The problem with
federal laws like that is that businesses across the US are vastly different.
When you make a law that brings regressive or predatory companies to a minimum
standard, it protects the employees of those companies.
However, it can hurt
the employees of progressive companies. By enforcing a medium standard, it
brings everyone into the middle.
For example, we try
very hard to make sure our employees are happy, well-compensated, and valued.
One of the ways we
do this is through our Paid Time Off plan. Salaried employees who are exempt
from overtime can take as much time off as they want. The only thing we are
concerned with is getting the job done.
A lot of our
employees will work extra hours one week in order to take extra time off the
next week.
The employees that
will become non-exempt in December will likely not be able to do that anymore.
They lose one of the perks that they really like, as we (a progressive company)
are dragged to the middle.
I've also seen this
with our clients. Many of our clients were using a satisfaction survey that
gave them in depth feedback about their individual patients. Then a few years
ago, the government mandated they used a certain survey instead. They had to
get rid of their superior tool in order to use the mediocre tool established by
the government. Dragged to the middle.
I'm not sure what the answer is. I like the idea of protecting people. I wish we could trust the free market to protect people. I know Pinnacle couldn’t keep employees if we tried to force them to work 60 hours without being compensated fairly. I suppose that's not the same everywhere. I don't know. All I know is that it's frustrating to get dragged back to the middle.
I'm not sure what the answer is. I like the idea of protecting people. I wish we could trust the free market to protect people. I know Pinnacle couldn’t keep employees if we tried to force them to work 60 hours without being compensated fairly. I suppose that's not the same everywhere. I don't know. All I know is that it's frustrating to get dragged back to the middle.