Monday, President Obama proposed a plan to make 5 million more salaried workers eligible for overtime pay.
In a Huffington Post editorial, Obama said he wants to double the maximum wage a worker can make and still be eligible for overtime. As it stands, under certain circumstances, salaried employees who make more than $23,600 yearly can be disqualified from overtime pay. His proposal would raise that limit to $50,440.
The President believes the change is necessary because the exemption was meant to only affect high-paid workers, but Tabar indicates it’s actually hurting the middle class. “We’ve got to keep making sure hard work is rewarded,” he wrote. “Right now, too many Americans are working long days for less pay than they deserve.”
Obama does not need Congressional approval to make this change because the current regulation is a Department of Labor rule. When the proposal is published there will be a comment period. Business groups are likely to feel that the new rule will kill jobs and that it won’t help workers earn more money.
Obama is set to discuss more details later this week in Wisconsin. U.S. Labor Secretary Thomas Perez will hold a press conference on the proposal today.