Last summer the Obama administration proposed increasing the overtime pay threshold. Currently, certain workers that earn less than $455 a week are eligible for overtime pay. The proposal would increase the threshold to $970 a week. As a Nation's Restaurant News story notes,

The rules could have a significant impact on employers’ costs and management strategies. The National Retail Federation has estimated that it would cost retail and restaurant businesses $745 million to comply with the new regulations.

As the Wall Street Journal reports, the proposed rule would also affect universities.

While the rule will apply to employers of all kinds, higher-education institutions say their missions and circumstances mean they’ll be hit in ways that other types of employers aren’t. School officials, who say they’re under pressure to keep a lid on tuition, have warned of cuts in student services, degree offerings and labor-intensive research on issues such as climate change and cancer. . . .

The new requirements are creating a clash between two White House priorities: strengthening the middle class by raising pay for many workers and relieving tuition burdens on college students.

It's a reminder that employment policies don't just impact profitable companies. They affect all employers — including social services organizations and public universities. (For another example, see this post on how Oregon's universities will be affected by the state's new minimum wage law.) While any individual policy may be a good idea, it's important to remember that there will be trade-offs — and policymakers should consider how proposals could impact other priorities.