Nearly a year ago (March 14th, 2014) President Obama signed a memorandum directing the Department of Labor to update the standards regarding salaried employment under the provisions of the Fair Labor Standards Act. This when and if it happens will be a very big deal but its not gotten a lot of attention.
Over the last year there has been quiet discussion about what this will all mean. Currently any employee earning more than $23,600 can be classified as a salaried employee and denied overtime pay. That threshold last was updated in 2004 and has not come even close to keeping up with inflation over the years. It is often cited as a major reason why wages and salaries have not grown as the economy improves.
Rumors have abounded regarding what the new threshold will be. Some reports have said the White House intended to raise that number to $42,000. Some members of Congress and others have pushed of a higher number ($51,000) saying had the threshold simply kept pace with inflation since 1975, that's where it would be today. Still others argue for more than $60,000.
Multiple press reports have indicated this would happen in February. But February has come and gone and nothing has happened, the buzz has died down.
This simple change would have major ramifications for millions of workers. No longer could someone be asked to work a 60 hour week for $30,000 with no overtime. it would put more disposable income in the pockets of people who surely spend it quickly giving our economy a jolt of adrenaline. This would also cause employers to hire more employees to avoid paying overtime, improving the employment picture.
How Obama's Reforms To Overtime Law Will Change People's Lives http://www.huffingtonpost.com/...
Even better, this decision does not require the approval of Congress unlike raising the minimum wage. It seems like today's very good job report should serve as a trigger for the Labor Department to act.
As we all know, while the economy is improving, unemployment is dropping, the stock market is soaring, middle to low income folks in this country have been largely left out of the benefits of all that. This could change that.
It is entirely predictable that Republicans will loudly complain when this happens making clear to all concerned who is on who's side. Many of the beneficiaries of overtime reform are likely to be people who've tended to vote Republican.
It's time to pull the trigger. What's taking so long?