Obama to order strengthened overtime pay rules - 21 News Now, More Local News for Youngstown, Ohio -

Obama to order strengthened overtime pay rules

Posted: Updated:

WASHINGTON (AP) - President Barack Obama is seeking changes in overtime rules that will make millions of workers eligible for time-and-a-half pay for their extra work.

Obama intends to sign a presidential memorandum Thursday directing the Labor Department to propose rules that expand the number of employees who benefit from overtime pay.

The rules would be aimed at salaried workers who make more than $455 a week and those who are ineligible for overtime because they are designated as management even though their supervisory duties are minimal.

The rules do not require congressional action but could take more than a year to implement.

Obama has put a focus this year on increasing worker pay, including a call for Congress to increase the federal minimum wage from $7.25 an hour to $10.10. He also issued an executive order requiring federal contractors to abide by the higher minimum wage.

In his memorandum, Obama plans to direct the Labor Department to recommend new regulations that could increase the salary threshold for overtime eligibility and to change the definition of what constitutes a supervisor.

Obama's attention to overtime dovetails with his emphasis on correcting wage disparities, a theme that he has said will be central to the remainder of his presidential term. It also serves his political ends during a midterm election year, giving him a populist issue along with his calls for a higher minimum wage and better pay for women.

The salary-per-week limit separating those who get overtime and those who don't was increased to $455 in 2004 during the Bush administration. At the time, it hadn't been increased since the mid-1970s.

"What we know right now is the threshold has been eroded by inflation, and there 3.1 million people who, if the threshold had kept up just with inflation, would automatically be covered by overtime provisions," said Betsey Stevenson, a member of Obama's Council of Economic Advisers.

Business groups said any forced increase in wages has consequences that could affect employment, prices and the survival of certain companies which, they said, already have to comply with requirements of a new health care law.

"Similar to minimum wage, these changes in overtime rules will fall most harshly on small- and medium-sized businesses, who are already trying to figure out the impact of Obamacare on them," said Marc Freedman, executive director of Labor Law Policy for the U.S. Chamber of Commerce.

___

Follow Jim Kuhnhenn at http://twitter.com/jkuhnhenn

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • More From wfmj.comMore>>

  • Ohio offers extra hunting days for mourning doves

    Ohio offers extra hunting days for mourning doves

    Sunday, July 27 2014 1:45 PM EDT2014-07-27 17:45:29 GMT
    Ohio will allow extra days for hunting mourning doves this year.More >>
    Ohio will allow extra days for hunting mourning doves this year.
    More >>
  • Ohio authorities say 2 killed in small plane crash

    Ohio authorities say 2 killed in small plane crash

    Sunday, July 27 2014 1:38 PM EDT2014-07-27 17:38:30 GMT
    FINDLAY, Ohio (AP) - Authorities in northwest Ohio say two people have been killed in an overnight small plane crash. The Hancock County sheriff's office says the crash apparently occurred at about 1 a.m. EDT Sunday. Investigators were still at the scene Sunday and little other information was available immediately. The plane crashed near a county road just northeast of the city of Findlay. The city has a small general aviation airport, but authorities were still investigating where the plan...More >>
    FINDLAY, Ohio (AP) - Authorities in northwest Ohio say two people have been killed in an overnight small plane crash. The Hancock County sheriff's office says the crash apparently occurred at about 1 a.m. EDT Sunday. Investigators were still at the scene Sunday and little other information was available immediately. The plane crashed near a county road just northeast of the city of Findlay. The city has a small general aviation airport, but authorities were still investigating where the plan...More >>
  • Cincinnati man wins grueling, 135-mile foot race

    Cincinnati man wins grueling, 135-mile foot race

    A Cincinnati man has won what is widely considered the most grueling race in all of running.More >>
    A Cincinnati man has won what is widely considered the most grueling race in all of running.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms