My world is set in present day to near future North America. The political and economic landscape is similar to what it is now.
There are two primary models for paying employees, the first of which is on a pure hourly basis where the employee is paid only for as many hours as they work, no more, no less. If the employee works more than 40 hours a week, their hourly rate increases to their base pay per hour plus half their base pay (time and a half). In some circumstances, they make double their hourly rate (double time).
The second approach is to negotiate a yearly salary where as long as the employee comes to work they will make their salary. Often, sick time and vacation benefits are included in this salary.
From the company's perspective, a salaried employee is a known, invariate cost. This payment model works well where the workload from year to year, and day to day is stable. On the other hand, if there is a large swing in workload on an hourly basis, or seasonal basis, it doesn't make sense for a company to pay lots of employees to sit around doing nothing. Hourly employees give them the flexibility to meet their needs without spending too much during low demand. When demand is high, wage costs are higher because of overtime but income is higher too so it works out.
However, there is an exploit in this system. Companies, with an eye towards profit, will not hire new salaried employees to match growing demand unless absolutely necessary. However, the work still needs to be done but it is instead distributed over an insufficient number of employees. Salaried employees are pressured via a variety of means to work lots of unpaid overtime at the expense of their leisure time and their health. In short, they pay large costs to maintain their jobs while their employer makes profits on essentially free labor.
This pattern of unpaid salaried labor grows to be very pervasive and so exploitive that a national movement gets the labor laws changed to where salaried employees are also eligible for overtime. No other changes are made to the labor laws. (For the sake of simplicity, no other changes to labor law will be made for the next five years.) The law takes effect on January 1st of the year after next. (So if the law was enacted in July 2015, it comes into effect on 1 Jan 2017.)
As the CEO and board of directors for a large, high skill, services company, how do you respond to this change? You have 10k salaried employees and 5k hourly employees. A recent survey indicated your average employee works 55 hours a week and takes only half of their allocated vacation time ever year. Annual earnings are 5 billion dollars and profits of 500 million dollars.
In the short term, your labor costs may skyrocket because previously externalized costs are reinternalized.
I'm primarily interested in how the Board and executive team respond to the change in terms of what policies they might implement and the effects of these policies on employees. Impacts on the broader economy are outside the scope of this question. Assume that earnings stay about the same for the next five years.