Obama Dropkicks Republicans With Executive Action To Raise Overtime Wages For 5 Million Workers

obama-signings

The media proclaimed “lame duck” president has roared back again, as President Obama signed an executive order this morning order that put the Labor Department into action to extend overtime pay and raise wages for 5 million workers.

The White House announced the President’s action via a fact sheet:


Today, President Obama announced that the Department of Labor will propose extending overtime pay to nearly 5 million workers. The proposal would guarantee overtime pay to most salaried workers earning less than an estimated $50,440 next year. The number of workers in each state who would be affected by this proposal can be found here.

The salary threshold guarantees overtime for most salaried workers who fall below it, but it is eroded by inflation every year. It has only been updated once since the 1970s, when the Bush Administration published a weak rule with the strong support of industry. Today, the salary threshold remains at $23,660 ($455 per week), which is below the poverty threshold for a family of four, and only 8 percent of full-time salaried workers fall below it.

President Obama directed the Secretary of Labor to update regulations relating to who qualifies for overtime pay so that they once 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. Following months of extensive consultations with employers, workers, unions, and other stakeholders, the Department of Labor developed a proposal that would:

– Raise the threshold under which most salaried workers are guaranteed overtime to equal the 40th percentile of weekly earnings for full-time salaried workers. As proposed, this would raise the salary threshold from $455 a week ($23,660 a year) – below the poverty threshold for a family of four – to a projected level of $970 a week ($50,440 a year) in 2016.

– Extend overtime pay and the minimum wage to nearly 5 million workers within the first year of its implementation, of which 56 percent are women and 53 percent have at least a college degree.

– Provide greater clarity for millions more workers so they – and their employers – can determine more easily if they should be receiving overtime pay.

– Prevent a future erosion of overtime and ensure greater predictability by automatically updating the salary threshold based on inflation or wage growth over time.

The President wrote in a Huffington Post op-ed, “We’ve got to keep making sure hard work is rewarded. Right now, too many Americans are working long days for less pay than they deserve. That’s partly because we’ve failed to update overtime regulations for years — and an exemption meant for highly paid, white collar employees now leaves out workers making as little as $23,660 a year — no matter how many hours they work.”

In plain English what this new rule will do is end the practice by some employers of deeming low paid workers ineligible for overtime pay by sticking a managerial title on their job duties. The retail and service sector industries commonly use this practice to keep wages low.

With one executive order, President Obama has taken a step to boost wages for millions of hard working Americans. The President’s action is a giant win for labor, and for workers all across the country.

Republicans have insisted that raising the threshold for overtime will kill jobs, but there is no evidence that this will happen. Republicans are confusing what they believe, anything that is good for workers is bad for the economy, with reality.

Congressional action is not required on these new rules so more whining about “Obama the dictator” should be expected from Republicans, but today workers got a big win, and President Obama has taken action to raise wages for millions.

The left is on an unmistakable roll.

If you’re ready to read more from the unbossed and unbought Politicus team, sign up for our newsletter here!

26 Replies to “Obama Dropkicks Republicans With Executive Action To Raise Overtime Wages For 5 Million Workers”

  1. Nothing like kicking your enemy when they’re down. On the other hand, what good is it if the TPP Trade deal goes through?

  2. So, what good will this be if a corporation decides that such will cut into it’s profits; profits necessary to insure that the CEO gets it’s Golden Parachute?

  3. In comparison between the actions of this president and any Republican candidate running for president, it should be a no brainer on which party is better for the people of the United States. I hope the people will make it very clear come voting time what type of country do they want?

  4. The Republicans are ignoring the fact that the more money people have, the more they will spend and the more they spend the more people will be needed to produce the goods that can be purchased, this means more jobs. Just plain common sense.

    People are not spending now because it takes all they earn to put food on the table, clothing for themselves and their families, and mortgages to be paid.

    But, we can be sure that the Stupid Party will object to more jobs and people earning a livable wage because people earning a livable wage generally means better educated people. If they can keep us poor and uneducated they can then feed us a bunch of crap about how they are working sooo hard for the Average person.

    Way to go Mr. President. Show the Party of Stupidity just who is working for whom.

  5. Thank you President Obama. One more way to get money in the hands of the people. We have a serious problem when 95% of our created wealth went to the 1% since 2009, trillions why the rest of us are suffering. Another way to get money in the hands of the people without Congressional approval is to get the Treasury to mint a coin in the amount of $1000 a month per every person, or require the Fed to issue Credit Cards for services and food in the amount of $1,200 a month for everyone making less then $35,000. Drastic measures are required since the Congress refuses to serve the welfare and good of the public.

  6. The Republicans are goin’ NUTS!

    OBAMA: “Get outta my way!”

    REPUBLICANS: “You can’t do this.”

    OBAMA: “SEZ WHO?”

    AMERICANS: “Way to go Mr. President.”

  7. All the good he’s trying to do for the American people, I refuse to believe that he would do something to hurt them in the TPP.

  8. Since when is the business owners community “down”. Many thousands of workers have been cheated out of receiving time and a half pay (overtime pay) because of this loophole of calling them “management”, even though they make only thirty or forty thousand annually. I speak from experience because it happened to me

  9. Coming from a business owner…
    My employees I do have on salary have a ton of flexibility I give them on hours. They take off when they need too and work when I need them too. Its a great system, if they feel they are getting screwed, they would not work for me.
    Now, they will have to go on the clock, I will get more strict on the leisure time and they will not make anymore money! They want be as happy and I want either. Want help anyone! But it sure makes you libs feel a lot better!

  10. Cry me a river.

    You should use “to” instead of “too”, Mr. “Businessman”.

    I don’t think I’d want to work for a man who doesn’t know his grammar.

    Try again Mr. Paid Sock Puppet.

  11. What’s stopping your from continuing to work with your workers with flexibility that benefits you both? The only difference I see is you would have to pay your employees overtime for the excess hours they currently work for you, for free. A win for them. For you, not so much.

    Some might say you’ve been taking advantage of your valued employees. Thanks to President Obama, they won’t be able to say that anymore!

  12. Companies will stream line, hours cut, and layoffs handed out. Those at the top of their pay potential will be pushed out to make way for lower paid employees to take the same position. Only the positions they will take will be newly created positions with less authority and fewer hours resulting in micro management. Companies like Waliworld will just adjust and make sure they don’t pay a cent more.

    This is a noble idea unfortunately it just wont have the affect it was intended to have. Notice he doesn’t promise those millions of people they will make more only that they will be “affected by this”

    My opinion is that the negatives will out weigh the benefits.

  13. Everytime a proposal to increase minimum wage is enacted, or some other action that increases the wages of workers comes about- every employer denounces it as a “job killer”.

    The same was said about Obama-care. Yet witness it now.

  14. Managerial positions were some of the few jobs left that had not become part time jobs after Obamacare was put in place. Get ready for that to change! Managers, get ready to look for a second job when this cuts your hours to under 30 a week! And don’t forget to thank Obama as you lose everything on the way back down the ladder!

  15. Oh brother… You sound every half assed fool I’ve seen on Facebook or Twitter or any other social media website.

    Where’s the proof that the positions are becoming part time jobs thanks to the ACA? Oh, and use legitimate sources please. No RedState or Breitbart or Fox News or whatever shithole you choose to avoid the reality of what’s going on.

    Oh, and I will thank the President… But not because I’ve lost everything. It’s because he gives a rat’s ass about us poor people! Unlike you and your ilk, he cares about making the playing field even. So, go back to your hole and think about what you said… but don’t think too hard. Don’t want those few brain cells left to overheat, you know.

  16. these trade agreements lose jobs, increase the trade deficit and expand the wealth divide. Those are the consistent outcomes, all are well documented. I see three reasons why President Obama is working so hard to pass these rigged corporate trade deals.

    President Obama has always been a Wall Street Democrat. He believes in capitalist markets dominated by big finance. Wall Street was the key to him winning his first presidential election and he has been loyal to them despite their crashing of the economy. He has surrounded himself with Wall Street advisers and has never sent a leader of a Wall Street bank or investment firm to jail. You could see these Wall Street market tendencies in his healthcare law, the ACA. It is an investor-driven law that is built on the market approach to healthcare rather than the social good or human rights approach. It benefits investors in for-profit hospitals, pharmaceutical companies and the insurance industry. As we are alre…

  17. I believe you mean to say “won’t” not “want” I don’t know what kind of business you have but I do know you couldn’t pass a 4th grade spelling and grammer test. Glad I don’t work for you.

  18. WHAT A CROCK!

    You CLAIM to be a businessman, but say:
    “Now, they will have to go on the clock”

    NOW they have to go on the clock? What sort of $hitty businessman doesn’t even know how many hours his employees are working?

    And if you’re so worried about paying them overtime for the work they’ve been doing for you FOR FREE up to now, why would you have “to get more strict on the leisure time.”?

    To avoid that overtime you’re so worried about, you’d want them to take MORE leisure time – not less.

    You make no sense at all, and are just parroting some Repubican talking points you sort of heard.

    So you’re WRONG when you say “they want [sic] be as happy and I want [sic] either.”

    Businessman? Hell, you can’t even write a simple declarative sentence, let alone a Business Plan.

  19. You and your employees may have a working relationship which is acceptable to both parties, that doesn’t make your business model the norm in this country by any means – there are many people in “managerial” positions who a pretty much being dry reamed by their employers. And, your statement that” if they thought they were being screwed they wouldn’t work for me” is an assumption on your part, since there may be some who have no other option.
    Any business, regardless of type, is a team effort: management, labor, and clients/customers. Many consider management to be the driving force, but it’s a 3-legged stool, Phil, and treating your employees AND clients well is only good business sense.
    If you change your relationship with your employees as you implied, I’d be curious to see what kind of turnover you start experiencing in your workforce.

  20. dmhlt:

    I agree with you.

    I think, reading thru the lines of his phony assertions, that he is a businessman is pure BS. What he wrote sounds like convoluted double talk with not one iota of logic.

  21. It could be that his employees that are on salary can often get away with say playing games at work etc as it is now, but that once he has to pay for every hour he will have to crack down and make them work rather than play.

    I mention this because I knew an IT guy who was on salary who often played video games for 2-3 hours every day at work. Oh sure he was often ‘at’ work for 10+ hours everyday, but he wasn’t necessarily working that whole time. With the overtime rules his boss would likely lean on him hard not to goof off at work and to properly clock in etc. As it was no one cared as long as all the work that needed done was done on time.

    Actually I think his salary is over the cut off(or at least very close to it) so he won’t be effected by this, but the point is there ARE some folks who have a really laid back workplace which relied heavily on dodging over time. Now those workplaces will have to get strict.

    A necessary evil perhaps with the way some companies abused i…

Comments are closed.