President Obama says it’s Time to Change Overtime Rules
Washington (CNN) – The President says it’s time to update regulations on who qualifies for overtime protection.
Obama says, “I’m going to use my pen to give more Americans the overtime pay they deserve. Overtime’s a pretty simple idea. If you have to work more, you should get paid more.”
Current rules governing overtime pay are “wrong,” President Barack Obama said Thursday as he signed an order directing his administration to reexamine how employees are paid for working more than 40 hours per week.
“Overtime is a pretty simple idea. If you have to work more, you should get paid more,” Obama said at the White House. “Unfortunately today, millions of Americans aren’t getting the extra pay they deserve.”
Currently, most hourly workers must be paid time-and-a-half if they work more than 40 hours a week. Most salaried workers do not need to be paid overtime, unless they earn less than $455 a week.
But that works out to $23,660 a year, which is less than the federal poverty level for a family of four.
The $455 threshold for overtime hasn’t been raised in 10 years, since President Bush upped it from $250 a week. It would be $553 today if it had gone up in line with inflation.
Read the entire CNN article here.