Obama is busy making his rounds as the United States President. Which is why this labor reform is considered to be one of his most consequential tackles in his term. Obama is bringing overtime pay to millions of workers in the United States, and this could just be the start.
A new rule to extend overtime protections to American workers has been organized by the administration of President Barack Obama. It will be implemented by the the Labor Department under the approval of under Secretary Tom Perez. This reform is considered to be one of the most ambitious economic reforms in Obama's tenure, according to the Huffington Post.
The new rule can be accomplished by raising the overtime salary threshold. Nearly all workers earning salaries beneath that threshold are entitled to time-and-a-half pay whenever they work more than 40 hours in a week. Now, the threshold is just $23,660.
The White House will be doubling that number, to $47,476, guaranteeing overtime rights for salaried workers earning less than that. The Labor Department will also be updating the threshold every three years to make sure it keeps pace with inflation. Employers, business owners and industry leaders are not happy with this. Compared to employees, Perez said "The overtime rule is about making sure middle-class jobs pay middle-class wages. Some will see more money in their pockets ... Some will get more time with their family ... and everybody will receive clarity on where they stand, so that they can stand up for their rights." Other reports mentioned that employers are looking to cut hours back and not give overtime in order to save on cost. This can be a positive thing which means employees can spend more time with their families.
"Either way, the worker wins," Vice President Joe Biden said.