Wednesday, April 15, 2015

Problems of a shopkeeper

So they had a big rally to make the minimum wage to $15 an hour for fast food workers. Now most people have no idea of how this will effect a business. So many small businesses are on the bubble that a small increase in wages and benefits will force them to close. It happened in San Francisco when they raised the minimum wage and book stores and restaurants had to close because they just couldn't pay it.

I recently had a problem with an ex-employee. She got her W-2 and complained that she didn't get any overtime. Now she never complained when she got her weekly paycheck. Instead she waited until now and is threatening to go to the Dept of Labor. So I guess I have to pay her even though I have never paid overtime before. I have to check what the law is but I am not sanguine that I am in the right. The deck is stacked for the employee in NYC so I don't have a shot. I had someone get unemployment who was working off the books and I proved it with photos. But it didn't matter.

It is enough to make you want to close up shop and go on welfare or something.

3 comments:

Michael Haz said...

Was she hourly, and working more than 40 hours in a week? If yes to both, you probably owe for OT.

I rarely hired hourly employees. I offered even my lowest paid employees a weekly salary, thereby making them exempt form overtime. Some weeks they might have had to work only 25 hours, and got a regular paycheck, and other weeks they had to work 50 hours for the same paycheck.

Few complained, and most liked the idea of being salaried rather than hourly. I lost fewer employees because they liked the idea of a regular paycheck. And it caused me to be a better manager, making sure there was full work for whoever I hired.

ricpic said...

Not only does the Left not care that raising the minimum wage to obscene heights will kill many businesses, for the Left that's a bonus. The insane costs of doing business has already resulted in a broken economy. It's a lie that there is any growth at all. The American economy is dead in the water, no growth, broken. And that's fine with the Left. Most don't know, don't have the faintest idea that we are on the verge of tipping into a permanently straightened share the misery socialist country.

ndspinelli said...

Just use robots, like the Jetson's.