President Barack Obama on Thursday will direct the Labor Department to strengthen overtime pay protections for millions of workers, a White House official said.
The directive, part of Obama’s promise to act without Congress using executive actions to get his policy goals through, is meant to help salaried workers, such as fast-food shift supervisors or convenience store managers, who may be expected to work more than 40 hours a week without receiving overtime pay. The proposed change is part of Obama’s effort to focus on closing the gap between the wealthy and the poor, which also includes a call to raise the federal minimum wage from $7.25 per hour to $10.10.
The proposal is likely to be met with opposition from some Republicans and members of the business community who say the private sector should have flexibility in setting wages.
Under the new changes Obama is seeking, the Labor Department could raise the pay threshold for workers covered by overtime rules. Currently, salaried workers who make more than $455 per week are exempt from overtime. California and New York have set higher thresholds of $640 and $600 a week respectively, the White House official said.
Republicans were not thrilled with news of the measure.
“There’s all kinds of rumors about what the president may or may not do with regards to overtime pay and reclassifying some jobs for overtime,” House Speaker John Boehner said, according to the Washington Post. “But if you don’t have a job, you don’t qualify for overtime. So what do you get out of it? You get nothing. The president’s policies are making it difficult for employers to expand employment. And until the president’s policies get out of the way, employers are going to continue to sit on their hands.”
The move is seen as part of Obama’s pledge to combat income inequality with his “year of action” announced at this year’s State of the Union.
