Washington Examiner, August 19, 2011, Friday

Washington Examiner

August 19, 2011, Friday

Washington Examiner (full article)

Overtime a 'cost of doing business'

Last year, 28 Metro employees doubled their salaries with the extra work, according to a Washington Examiner analysis of Metro data. "It's hard to believe that double pay -- or double hours -- is going to be cheaper," said Ronald Ehrenberg, a Cornell University professor of economics and industrial labor relations.

He explained that the economics of offering overtime versus hiring more staff depend on the fixed costs of employment such as health insurance and pension payments. Often, paying time and a half is cheaper than shouldering the extra costs to bring on a new person, he said. But it's a balance.