Reports: Obama to issue executive order expanding overtime pay
President Obama will issue an executive order today expanding the number of people who qualify for overtime pay under federal labor law, according to news reports.
According to the Associated Press, the directive is designed to help salaried workers, such as fast-food shift supervisors or convenience store managers, who may be expected to work more than 40 hours a week without receiving overtime pay.
AP reported that under Obama?s proposed changes, the Labor Department could raise the pay threshold for workers covered by overtime rules.
The legal authority derives from the Fair Labor Standards Act, which, under current regulations, guarantees extra pay to salaried workers told to work overtime if they earn less than $455 per week.
Obama?s order would increase that salary level. The reports did not say by how much.
The move would ?potentially shift billions of dollars worth of corporate income into the pockets of workers,? the New York Times said on its Web site. The Times quoted Cecilia Mu?oz, director of the White House Domestic Policy Council, as saying the effort was part of Obama?s pledge to help workers thrive:
?We need to fix the system so folks working hard are getting compensated fairly,? she said on Tuesday evening. ?That?s why we are jump-starting this effort.?
Bloomberg said it confirmed the story.
The move is likely to infuriate business interests, such as the U.S. Chamber of Commerce, as well as congressional Republicans, who have accused the president of abusing his executive authority.
Obama and Democrats in congressional races are trying to make helping the middle class their central political theme heading into the 2014 midterm elections, using the issue to draw a contrast with Republicans. Obama has repeatedly said he will use executive orders and regulatory powers to bypass the Republicans, who have used their control the House of Representatives to block most of his initiatives, according to the Times:
?The proposed new regulations would increase the number of people who qualify for overtime and continue Mr. Obama?s fight against what he says is a crisis of economic inequality in the country. Changes to the regulations will be subject to public comment before final approval by the Labor Department, and it is possible that strong opposition could cause Mr. Obama to scale back his proposal.
Debate - Does President Obama have the right to this? Is it a good idea? Will it hurt businesses? Any other thoughts on the subject?
Not saying you can't have that opinion...just surprised that of all the things...a raise to an already existing limit would be worth that statement.
Or is this about the executive order thing. Because that is an old and rather boring debate, seeing as he has far less than many other presidents in your lifetime. Well, I don't actually know how long you've been alive. It applies to my lifetime at least.
But some of the jobs mentioned are things like McDonald's supervisor. It's not like this EO is going to cause McDonald's to outsource supervisory positions.
Some of the people I know have been hurt by this. If their employer gives their job a certain title, they can pay a salary and expect more work. When I divided $455/week by a 40-hour week, it's only $11something an hour. If an employer can get 45 or 50 hours from the employee without having to pay more than that, it's a win for them. I don't think it's unreasonable to raise the $455 threshold.
The problem is the quantity of changes that are hitting businesses. When the economy is struggling already under new Obamacare rules and expenses and they are already trying to increase the minimum wage and now this would you be hiring new people if you were a business? This is NOT going to get us out of this mess. Businesses and the economy are not going to grow when businesses are scared to move forward not knowing what they are going to be hit with next.
Mom to Lee, Jake, Brandon, Rocco
Stepmom to Ryan, Regan, Braden, Baley
Granddaughters Kylie 10/18/2010 & Aleya 4/22/2013
I never consider a difference of opinion in politics, in religion, in philosopy, as a cause for withdrawing from a friend. --Thomas Jefferson
To sum up:
1. You don't think minimum wage should be increased because of the financial hardship on a company.
2. People should be expected to move up the ladder instead of having a higher minimum wage.
3. When someone moves up the ladder (like a McDonald's supervisor) they can expect to be salaried and to not receive overtime and work, on average, 50 hours a week. (essentially making about the current minimum wage).
Yes, I can see why that would motivate someone to keep progressing at their job.
(I'm currently a salaried worker w/o overtime who makes way more than minimum wage and would be exempt from this who still thinks it is worthy)
Mom to Elizabeth (6) and Corinne (4)