Skip to main content

Andrew Puzder, CEO of CKE Restaurants, takes part in a panel discussion titled
Fast food CEO Andy Puzder
So-called fast food "managers" who do much of the same work as non-managerial workers, but without being eligible for overtime pay, prefer the pride of being called managers to overtime pay anyway, according to Andy Puzder, the CEO of the parent company of chains like Carl's Jr. and Hardee's. No, really:
Workers who aspire to climb the management ladder strive for the opportunity to move from hourly-wage, crew-level positions to salaried management positions with performance-based incentives. What they lose in overtime pay they gain in the stature and sense of accomplishment that comes from being a salaried manager.
As is well known, grocery stores and car dealerships accept stature and a sense of accomplishment as payment.

Please read below the fold for more on this story.

The motivation for Puzder's op-ed in (of course) the Wall Street Journal is President Barack Obama's plan to expand overtime eligibility. Currently, a worker making less than $24,000 can be called a "manager" and stripped of overtime protections, and the fast food industry makes heavy use of that fact. Obama's proposal to raise the threshold significantly higher would change the calculation that many fast food and retail companies make in using low-salaried "managers" to do the work of hourly employees the businesses aren't willing to pay for. For instance, Dave Jamieson reported last year on a Dollar General manager in this position:

Pressured to keep payroll down, Hughey spent most of her time unloading trucks, stocking shelves and manning the cash register, often logging 12-hour days, six days a week, to keep the store operating. She said she felt less like a manager than a manual laborer.

Dollar General saved a bundle by having Hughey do much of the grunt work. As a salaried manager, she was exempt from overtime protections and didn't get paid for extra work. Given that she often worked 70 hours a week, at an annual salary of $34,700, her pay sometimes broke down to less than $10 per hour—hardly a managerial haul.

Maybe Puzder's fast food chains pay their salaried managers better and require less ridiculous hours of them. But his freakout over the possibility that he'd have to pay some of those managers overtime suggests that Carl's Jr. and Hardee's are in fact relying heavily enough on salaries below the threshold Obama might set as the new overtime exemption level and forcing those managers to work what would be substantial overtime.

But hey, at least they have all that salaried-manager stature while they're doing non-managerial work for far more than 40 hours a week.

Originally posted to Daily Kos Labor on Wed Mar 26, 2014 at 11:48 AM PDT.

Also republished by Daily Kos.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site