Yes, because as is demonstrated in real life, businesses will skimp on hiring sufficient, quality hourly staff and dump the workload on meagerly paid “managers”. One popular way is to use immigrants from one’s own country, and tie the ball and chain around them. They need the consistent employment to get established in the country, and have few options.
It will not encourage contractor relationships anymore than now, it will simply require businesses to pay the hourly workers more and give them steady schedules, benefits, etc.
> It will not encourage contractor relationships anymore than now,
Doubtful
> it will simply require businesses to pay the hourly workers more
Why? It seems like this is a lever you're hoping to use to get the exempt workers paid more and/or a slightly greater allocation of work away from what had formerly been exempt workers.
Because they will need to hire more hourly workers.
The whole concept of hourly minimum wage is undercut by the ability of businesses to pay a meager salary.
The mechanism of action for increases prices paid to workers is by decreasing supply of man hours from one individual at a low price (i.e. increasing salaries minimum).
> Because they will need to hire more hourly workers.
I think this is absolute rounding error on the number of additional hourly workers needed.
Yes, a reasonable percentage of salaried workers in low wage industries are exploited as you describe. In turn, with an hourly wage, they'll work a small percentage fewer hours.
It will not encourage contractor relationships anymore than now, it will simply require businesses to pay the hourly workers more and give them steady schedules, benefits, etc.