Latest / Bloomberg Intelligence / LaSalle's Gimbel: Overtime Rule Could Hurt Sweat Equity (Audio)

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LaSalle's Gimbel: Overtime Rule Could Hurt Sweat Equity (Audio) · Bloomberg Intelligence

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  Speaker 1: You're listening to taking stock with pim Box and Dapolin
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  Speaker 1: NS on Bloomberg Radio. The US economy delivered modest job
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  Speaker 1: growth in September. Employment outside of the farm sector grew
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  Speaker 1: by one hundred and fifties six thousand jobs during the month.
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  Speaker 1: This all according to the Labor Department, this was the
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  Speaker 1: smallest gain since May. Let's find out more from Tom Gimble.
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  Speaker 1: He is the founder and the chief executive of LaSalle
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  Speaker 1: Network and he joins us now from Chicago. Tom, thanks
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  Speaker 1: very much for being with us. First, tell people what
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  Speaker 1: is LaSalle Network, and then you can tell us about
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  Speaker 1: some trends in hiring. Sure. We're a staffing, recruiting in
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  Speaker 1: corporate culture firm. We're headquartered at of Chicago, working in
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  Speaker 1: about twenty three different major markets around the country, with
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  Speaker 1: physical offices in Chicago and San Francisco and then remote
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  Speaker 1: locations UH in those other cities, and we provide recruiting,
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  Speaker 1: search and staffing services UM ranging from accounting and financial personnel,
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  Speaker 1: human resources, marketing, technology, and administrative Tom, excuse me, um.
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  Speaker 1: Last time we talked, it seemed like you were reasonably
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  Speaker 1: upbeat on hiring, given your business and the kind of
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  Speaker 1: people you were seeing being offered jobs and getting jobs.
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  Speaker 1: I want to get to the whole point though, of
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  Speaker 1: what the FED may do, and that's raising their key
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  Speaker 1: rate by a quarter point by at the end of
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  Speaker 1: the year, which then may lead to a whole debate
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  Speaker 1: about g and how many do you do the following year?
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  Speaker 1: Is this going to affect the any momentum, however modest,
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  Speaker 1: we have in hiring at this point, I think the
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  Speaker 1: FED rate is gonna if the Fed decides to increase
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  Speaker 1: interest rates, is going to be secondary to how the
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  Speaker 1: global economy responds. Really, the national economy and global economy
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  Speaker 1: responds to two things. Number one, the election and who
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  Speaker 1: takes over in UH in January after the November election.
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  Speaker 1: And number two, what's going to happen with some of
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  Speaker 1: the UM you know, not as pro business legislation, and
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  Speaker 1: that is the increase in minimum wage, and that continues
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  Speaker 1: to take effect in the next two or three or
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  Speaker 1: four years to come. In secondarily, UM the overtime exemption law,
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  Speaker 1: which will either happen in December or it will take
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  Speaker 1: place in June of and those will greatly affect how
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  Speaker 1: corporations are compensating people, running people, what they're doing with
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  Speaker 1: overtime pay, people getting laid off, what the salaries are
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  Speaker 1: for new hires. I think there's a lot will go
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  Speaker 1: into it, and I think, uh, quite frankly, twenty five
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  Speaker 1: basis points by the Fed in November or December isn't
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  Speaker 1: going to have that great effect on those issues. Tom,
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  Speaker 1: I wonder if you could just offer an example, Uh,
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  Speaker 1: you don't have to name the company, but an example
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  Speaker 1: of how you have seen these new regulations changed the
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  Speaker 1: behavior of employers. Sure, so we're working with a lot
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  Speaker 1: of companies right now that have millennial workforce. They're hiring
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  Speaker 1: people out of college. I'm not talking about the most
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  Speaker 1: expensive areas like San Francisco or New York, but in
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  Speaker 1: in other cities around the country, and they're hiring a
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  Speaker 1: millennial group out of out of college, white collar, liberal
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  Speaker 1: arts kids, and they're getting jobs between thirty and forty
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  Speaker 1: dollars a year, and they're in either management training programs,
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  Speaker 1: they're in inside sales, they're in operational roles. And now
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  Speaker 1: they're not going to be able to work more than
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  Speaker 1: forty hours a week. And the traditional way that this
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  Speaker 1: country has been built on the white collar side, and
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  Speaker 1: the whole story of from the mail room to the
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  Speaker 1: CEO was put in by sweat equity and and working
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  Speaker 1: your butt off to get ahead. And now that's not
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  Speaker 1: gonna happen. So you're not gonna allow people to compete
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  Speaker 1: unless companies want to spend extremental dollars um to pay
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  Speaker 1: these books. It is. It's a different mindset than this
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  Speaker 1: country has ever seen before. You know, I just have
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  Speaker 1: to tise want to throw this in that big of
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  Speaker 1: American mery. Lynch Global Research put out a piece by
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  Speaker 1: Ethan Harris, who who's one of their top economists there
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  Speaker 1: around the world in eighteen days uh and he said
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  Speaker 1: that the uh, the question of the election has come
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  Speaker 1: to the election probabilities far outweigh what the Fed might do.
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  Speaker 1: So it's interesting, do you think it's a question of
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  Speaker 1: sentiment or because of the policy changes that that might occur,
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  Speaker 1: that it's going to make such a big different difference
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  Speaker 1: to businesses? You know what I mean? Is it like
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  Speaker 1: they're too Trump is too much of an unknown Hillary
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  Speaker 1: is more of a known quantity. Trump's offered big tax cuts.
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  Speaker 1: What do you think that businesses are looking for when
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  Speaker 1: they think about workers and what they're gonna do next.
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  Speaker 1: I think what businesses look at and they say, um
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  Speaker 1: that Hillary Clinton coming in is more of a probably
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  Speaker 1: a little bit more dissenter of what the current administration is.
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  Speaker 1: But it's a known commodity and we know what we're
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  Speaker 1: going to get, but there still is a lot more um,
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  Speaker 1: you know, legislation, a lot more rules, a lot more
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  Speaker 1: compliance than that business would like. I think they feel
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  Speaker 1: with Trump. I was listening to the three CEOs of
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  Speaker 1: companies that are are nine big, good, nine figure companies
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  Speaker 1: hundred and nine million in revenue the other day and
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  Speaker 1: they said, I'm not going to tell you that I'm
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  Speaker 1: voting for Trump. What I am going to tell you
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  Speaker 1: is that a Republican president is better for business in
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  Speaker 1: the Democratic president. Okay, well let's leave it there. Uh.
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  Speaker 1: We're so happy to have just spoken with Tom Gimbal,
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  Speaker 1: founder and CEO of Lassal Network. He said it the
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  Speaker 1: FED may raise the key rate once this year, a
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  Speaker 1: couple of times next year, but people are really mostly
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  Speaker 1: focused right now on the presidential election, and I suspect
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  Speaker 1: the closer we get, the truer that is going to become.
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