Obama To Expand Overtime Pay For Millions

Obama To Expand Overtime Pay For Millions

3:36pm Jun 30, 2015
President Barack Obama speaks in the Rose Garden of the White House in Washington. The Obama administration will propose requiring overtime pay for workers who earn nearly $1,000 per week, three individuals familiar with the plan said Monday, June 29. (Pa

President Obama announced this week that the Labor Department will expand overtime pay, in a move the administration estimates would impact 5 million U.S. workers. That would double the income threshold at which employers can avoid paying overtime.

Right now, only salaried employees earning less $23,660 a year are eligible for overtime. This rule would raise that threshold so that employees making up to $50,660 a year would get paid overtime.

In the Huffington Post, the president explained his justification for the new rules: “That’s good for workers who want fair pay, and it’s good for business owners who are already paying their employees what they deserve — since those who are doing right by their employees are undercut by competitors who aren’t,” he wrote.

There has been criticism of the change from Republicans and the Chamber of Commerce, which said Monday that the plan “will negatively impact small businesses.” Here & Now’s Jeremy Hobson speaks with the Wall Street Journal’s Jason Bellini about the changes.

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