Overtime proposal would boost salaries of five million - WFMJ.com News weather sports for Youngstown-Warren Ohio

Overtime proposal would boost salaries of five million

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YOUNGSTOWN, Ohio - Five million managers across the country could be in line to receive overtime.

This after the President proposed raising the minimum salary for managers which would put more money in their pocket books.

But who would qualify?

It's what President Barack Obama is calling an "Important step forward toward empowering the middle class and rewarding hard work with a fair wage."

The proposal would guarantee overtime pay to most salaried workers or managers earning less than an estimated $50,000 a year.

Bert Cene with the Mahoning and Columbiana County Training Association says, "It's definitely going to effect workers who are considered management workers making within the salary range that he's proposing.  There's no overtime at this point, but in the future would be.  And also it's going to be effecting employers on how they establish their management positions and who actually is going to be considered management in the future."

As proposed it would raise the salary threshold from $455 a week and an estimated $23,000 a year, which is below the poverty level for a family of four --- to a projected level of $970 a week, which is approximately $50,000 dollars a year.   A benefit to workers, but not so much to employers who may give workers a management title, more responsibility and salary that often results in the employee working more hours.

Dr. Todd Porter, the Chairman of YSU Economics Department says, "Employers can save money by having people work sixty hours a week versus 40 hours a week primarily because of a fixed cost of fringe benefits, health care, vacation time and so forth."

If the proposal is passed, employers will have to decide the most cost effective way to run their business by either hiring more workers or paying the overtime.

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