Overtime or Less Time For Radio

A sweeping new rule by the U.S. Department of Labor will likely mean additional pay—or less time on the clock—for thousands of radio station employees, according to InsideRadio.

Employers preparing for a new federal overtime-pay regulation say the change will lead them to slow hiring, reduce workers’ hours and cut pay, bonuses and benefits.

The regulation, finalized Wednesday by the Labor Department, will make 4.2 million employees newly eligible for overtime pay when they work more than 40 hours a week, and will clarify that millions more have already been eligible but haven’t been getting the pay to which they are legally entitled.

According to The Wall Street Journal, when the rule takes effect in December, the threshold under which salaried workers will automatically qualify for overtime pay will double to $47,476 a year, from $23,660. Workers who are paid hourly are generally eligible for overtime pay, regardless of their annual earnings.

The Department of Labor calculates 385,000 broadcasters—or 8.2% of those who work in radio and television—will be in line for additional pay. The exact number of people working in radio who will be impacted by the new rules isn’t yet clear.

The Bureau of Labor Statistics says the average salary for someone working in the radio industry is $51,660, yet more than one-third of employees earn less. Positions pay varies as well. The BLS says the typical radio announcer earns $41,220 a year while promotions managers average $113,610.

Jim Leven

Community Broadcasters chief executive Jim Leven says the radio industry has long been blessed by attracting a passionate workforce that’s willing to work whenever stations needed them around the clock. He believes the new federal labor guidelines could have unintended consequences and actually hurt workers, especially at some of the most challenged companies.

“In broadcasting, margins aren’t as big as they used to be, and at companies where revenue is growing 1%-2% or staying flat, it’s going to be very challenging if further expenses are added on and it will end up hurting employees,” he says. “Ultimately, some salaried employees won’t be salaried anymore, they’ll be hourly and some companies could make sure they don’t go over 30 hours per week and meet Affordable Care Act guidelines so workers would no longer get benefits.”

Already several companies are hiring multiple part-time staffers to cover what would have previously been a single full-time position in order to avoid a growing benefit burden.