Can 2020 Overtime Laws Trim Pay Rates?

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If you’re a salaried employee making under $35,000 a year, you are going to be an hourly employee during the 2020 calendar year.

This allows more workers to be paid overtime.

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I stepped inside the Regis hair salon to see what impacts the rule changes may have on everyday stylists.

“I’m paid a commission rate and that commission rate I can determine how much I want to make. I can make $50,000. I can make $40,000. It just depends on how I market myself, and how much I wanna work.”, says Assistant Manager and master stylist Barbara Evans.

Evans says when a Regis stylist is not working on a client, they are operating on hourly pay.



But since Evans makes more than $35,000 in commission, she says hourly pay -plus overtime would not satisfy her.

“I probably would be pretty upset because I’m accustomed to setting my own pay rate. When you’re commissioned, you work harder and you build faster.”

Plus employees working overtime would still be a win-win for everyone.

“This business consists of trial and error sometimes, I don’t see why punishment would be installed for someone that consistently went over end time. Because the company is still making the money, you’re still getting paid a percentage of what you’re doing. It wouldn’t be feasible to stop overtime if their client ran into overtime.”

But she did mention that hourly pay rate with overtime would benefit younger professionals.

“Basically a commission based pay rate for a profession such as mine is the best way for the average stylist to go. Unless she is trying to learn, just coming out of beauty school and trying to build their market.”