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Home Publications Blogs Beat the Press The CEO's of Hardee's Claims the Company Doesn't Pay Managers Management Level Salaries

The CEO's of Hardee's Claims the Company Doesn't Pay Managers Management Level Salaries

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Tuesday, 25 March 2014 07:03

This was one of the main points of a column that Andy Puzder, the CEO of Hardee's parent company CKE Restaurants, made in a WSJ column today. The column was complaining over President Obama's decision to raise the salary floor where overtime rules in the Fair Labor Standards Act (FSLA) may not apply. The current floor is $24,000 a year. Anyone getting lower pay than this is automatically covered by the FSLA overtime provisions.

Puzder is concerned that many of his branch managers will be covered by the FSLA overtime rules under the new floor that Obama will set. He tells readers that his managers start at around $36,000 a year and as high as $65,000, with an average around $45,000.

If the minimum wage had kept pace with economy-wide productivity growth since 1968 it would be over $17 an hour today. This means that, at $18 an hour, Hardee's entry level pay for the people it calls managers would be just slightly above a productivity adjusted minimum wage. And this calculation assumes that it managers put in just 40 hours a week. If they typically put in more hours than they would likely be earning less than 1968 minimum wage, adjusted for productivity growth. 

Comments (4)Add Comment
...
written by Last Mover, March 25, 2014 10:10

Underclass workers of America in big box stores object to this offensive degrading post by Dean Baker.

We are Associates, and FYI that's a higher rank than manager.

It makes us feel like lawyers despite the pay that's competitive with fast food workers.
One nationwide store promotes minimum wage workers to 'keyholder'
written by jaaaaayceeeee, March 26, 2014 1:33

Although they don't have to pay them as managers to manage the store, the keyholders get to feel trusted, as they do whatever extra work may come up.

The Obama administration better be serious about implementing the new FSLA rules, not just proposing them, because there are a lot of ersatz titles below Hardee's 'branch manager' that need more than exposure dollars.
Floor mopping
written by Jim Hannley, March 26, 2014 6:22
I wonder what we would find if those Hardee's managers were asked how often they had to mop the floor? I think people in those "management" classifications are sometimes the most abused.
Super Size Your Order?
written by Larry Signor, March 27, 2014 12:58
"...Hardee's entry level pay for the people it calls managers would be just slightly above a productivity adjusted minimum wage."

The product and service at fast food enterprises often reflects this wage perversion. The fast food industry is very effective at purloining revenue from both ends of the food chain.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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