Wednesday, July 1, 2015

Going Into Overtime

Every little bit helps.

Paul Waldman explains:

Under the Fair Labor Standards Act, employers have to provide overtime pay (usually time and a half) to employees who work more than 40 hours a week, but executives and managers are exempt from the requirement, as are those who make higher salaries. The trouble is that the rules don’t account for inflation, and so over time, what constituted a higher salary became absurdly low. The threshold has been raised only once since 1975, when it covered nearly half of U.S. workers; today it stands at less than $24,000, or lower than the poverty level for a family of four.


We should note that Obama could have gone higher than $50,400. Earlier this year, some Democrats on Capitol Hill worried that the administration was going to propose a lower overtime threshold, something like $42,000 a year. A group of liberal senators urged Obama to set the threshold at $54,000. They also argued that it should be pegged to increase with inflation going forward, an absolutely critical provision that would give the measure lasting effect. So Obama didn’t raise the threshold as far as they wanted, but he is accounting for future inflation, by pegging the overtime threshold to the 40th percentile of incomes.

Cue the GOP squawking points: Tyranny!  Unfair!  Job killer!  But since Congress doesn’t get to vote on the change, they can’t do anything but shriek, and good luck to the next Republican president who tries to take away overtime from millions of low to middle-income workers — also known as the GOP base.  Get your lead balloons here…