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

afternoon call with Bill Maloney. Bill, Good afternoon, Katherine. US stocks have rebattened for the lows for a second day, with the Dow currently down nine points, says Top drop five and AzaC is lowered by fifteen. At one point. The Dow is down a hundred and nineteen points, the small cap six hundred falls five, and the US ten yield at one point seven three. Eight out of eleven sub sectors are still lower, led by declines and materials,

industrials and consumer discretionary utilities. Healthcare and financials gained doubt. Transports fall sixties seven, as a biotech drop twelve, and the vig is higher by four percent. Leaders to the downside in the Dow included home Depot, up X and Walmart, while Travelers, Procter and Gamble and J and J. Lead. In other news, Tyson food Sinc. Nine percent was cut to sell at Pivotal amid a convincing class action lawsuit.

Honeywell dropped eight percent. Q three profit forecast was below estimates, while the gap ros as much as seventeen percent. That's a Motion's two thousand and eight, Live from the first breaking news task on Bow Maloney Katherine, thank you, Bill All and to hear live breaking news over your Bloomberg typed s q U a K on your terminal West

Texas Intermedia. Crude oilis down sixty three cents of barrel one in a quarter percent at one sparckled of two dollars ten cents ounce at twelve ten and the tenure treasury of three thirty seconds with the yield of one point seventy two sixty nine. And that's a Bloomberg business flash. You're listening to taking stock with pim Box and Dapolin NS on Bloomberg Radio. The US economy delivered modest job

growth in September. Employment outside of the farm sector grew by one hundred and fifties six thousand jobs during the month. This all according to the Labor Department, this was the smallest gain since May. Let's find out more from Tom Gimble. He is the founder and the chief executive of LaSalle Network and he joins us now from Chicago. Tom, thanks very much for being with us. First, tell people what is LaSalle Network, and then you can tell us about

some trends in hiring. Sure. We're a staffing, recruiting in corporate culture firm. We're headquartered at of Chicago, working in about twenty three different major markets around the country, with physical offices in Chicago and San Francisco and then remote locations UH in those other cities, and we provide recruiting, search and staffing services UM ranging from accounting and financial personnel, human resources, marketing, technology, and administrative Tom, excuse me, um.

Last time we talked, it seemed like you were reasonably upbeat on hiring, given your business and the kind of people you were seeing being offered jobs and getting jobs. I want to get to the whole point though, of what the FED may do, and that's raising their key rate by a quarter point by at the end of the year, which then may lead to a whole debate about g and how many do you do the following year?

Is this going to affect the any momentum, however modest, we have in hiring at this point, I think the FED rate is gonna if the Fed decides to increase interest rates, is going to be secondary to how the global economy responds. Really, the national economy and global economy responds to two things. Number one, the election and who takes over in UH in January after the November election.

And number two, what's going to happen with some of the UM you know, not as pro business legislation, and that is the increase in minimum wage, and that continues to take effect in the next two or three or

four years to come. In secondarily, UM the overtime exemption law, which will either happen in December or it will take place in June of and those will greatly affect how corporations are compensating people, running people, what they're doing with overtime pay, people getting laid off, what the salaries are for new hires. I think there's a lot will go into it, and I think, uh, quite frankly, twenty five basis points by the Fed in November or December isn't

going to have that great effect on those issues. Tom, I wonder if you could just offer an example, Uh, you don't have to name the company, but an example of how you have seen these new regulations changed the behavior of employers. Sure, so we're working with a lot of companies right now that have millennial workforce. They're hiring

people out of college. I'm not talking about the most expensive areas like San Francisco or New York, but in in other cities around the country, and they're hiring a millennial group out of out of college, white collar, liberal arts kids, and they're getting jobs between thirty and forty dollars a year, and they're in either management training programs, they're in inside sales, they're in operational roles. And now they're not going to be able to work more than

forty hours a week. And the traditional way that this country has been built on the white collar side, and the whole story of from the mail room to the CEO was put in by sweat equity and and working your butt off to get ahead. And now that's not gonna happen. So you're not gonna allow people to compete unless companies want to spend extremental dollars um to pay these books. It is. It's a different mindset than this

country has ever seen before. You know, I just have to tise want to throw this in that big of American mery. Lynch Global Research put out a piece by Ethan Harris, who who's one of their top economists there around the world in eighteen days uh and he said that the uh, the question of the election has come to the election probabilities far outweigh what the Fed might do.

So it's interesting, do you think it's a question of sentiment or because of the policy changes that that might occur, that it's going to make such a big different difference to businesses? You know what I mean? Is it like they're too Trump is too much of an unknown Hillary is more of a known quantity. Trump's offered big tax cuts. What do you think that businesses are looking for when they think about workers and what they're gonna do next.

I think what businesses look at and they say, um that Hillary Clinton coming in is more of a probably a little bit more dissenter of what the current administration is. But it's a known commodity and we know what we're going to get, but there still is a lot more um, you know, legislation, a lot more rules, a lot more compliance than that business would like. I think they feel

with Trump. I was listening to the three CEOs of companies that are are nine big, good, nine figure companies hundred and nine million in revenue the other day and they said, I'm not going to tell you that I'm voting for Trump. What I am going to tell you is that a Republican president is better for business in the Democratic president. Okay, well let's leave it there. Uh. We're so happy to have just spoken with Tom Gimbal,

founder and CEO of Lassal Network. He said it the FED may raise the key rate once this year, a couple of times next year, but people are really mostly focused right now on the presidential election, and I suspect the closer we get, the truer that is going to become. I'm Kathleen Hayes along with PM Fox on taking stock. This is Bloomberg. Bloomberg taking Stock has brought to by

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