During his last State of the Union Address, President Obama declared that “America needs a raise.” Yesterday, he acted on those words. The president announced that salaried employees (5 million Americans) making as much as $50,400 would be eligible for overtime. As Laura Clawson of Daily Kos puts it, employers will no longer be able to use exempt status (salaried employees) to keep from paying overtime. This move by the Obama Administration (if it’s not overturned by a court challenge) will either give employees more money or more time off. The 40 hour week will again become meaningful to millions of Americans. It’s a good day for working people.
P.S. President Obama is featured in The Huffington Post on his overtime reform. The president express great confidence that he is doing the right thing for American workers: "That's how America should do business. In this country, a hard day's work deserves a fair day's pay. That's at the heart of what it means to be middle class in America." I agree, but would add that what the president is doing will also help the working class and the working poor, who are often victims of wage theft. We all deserve a fair day's pay.
Laura Clawson of the Daily Kos reports on a big change in labor law that might impact millions of Americans. The Department of Labor is considering an increase to the threshold for overtime pay from $23,360 to $52,000, which means any worker, including salaried employees, making less than that amount would be legally entitled to overtime pay. Clawson notes that this is a change President Obama could make without legislative approval. She also says that the move would probably be opposed in the legislature and courts. Even so, changing the threshold would be a good way to help low wage workers, and it would be a fit punishment for employers who pay employees salary so they do not have to pay overtime. I hope President Obama and the DOL put working people first – raise the threshold.