POLITICO: Barack Obama poised to hike wages for millions – “The Obama administration is on the verge of possibly doubling the salary levels that would require employers to pay overtime in the most ambitious government intervention on wages in a decade”.
Today, the only way you’re automatically guaranteed time-and-a-half pay after logging your 40 hour week is if you earn less than $23,660 a year.
While just 8 percent of salaried workers fall below the current threshold, the new rules would increase the share to 44 percent, according to the left-leaning Economic Policy Institute, which published an influential report a year ago recommending raising the salary threshold to $50,440.
The White House said the president directed the secretary of labor to update regulations relating to who qualifies for overtime pay to again reflect the intent of the Fair Labor Standards Act and to simplify the rules so they’re easier for workers and businesses to understand and apply.
But the president’s proposal is already receiving criticism from Republicans and pro-business groups who claim the plan will cost people jobs. Under the new rules, they will be.
More Workers Eligible: In 2016, expect the salary threshold for employees eligible for overtime to increase.
The city of Lincoln says it has fewer than 10 workers who would be affected.
But for others, it could mean their employers will insist that they not work more than 40 hours a week so they don’t have to pay them overtime.
Nearly 5 million Americans nationwide could be seeing a bigger paycheck if the proposed overtime changes go into effect.
Tuesday, the Obama administration will propose changes to the rules determining which workers receive overtime pay. Obama highlighted the initiative in an effort to strengthen the middle class by “making sure hard work is rewarded”.
Some workers said it is time for a change. “Workers are now going to be acknowledged for the hours and time they put in to make companies successful”, said workplace expert Bob Rosner.
The Department of Labor is now holding a comment period for the proposed rule.
Next year, millions of American workers could become eligible to be paid for overtime.