Obama Uses Executive Order For Overtime Increase

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

(CBS News) President Obama has issued another executive order, this time regarding  overtime.

“Overtime’s a pretty simple idea — if you have to work more you should get paid more,” Mr. Obama said from the East Room of the White House, standing next to workers who stand to benefit from the changed rules.

Federal labor rules currently let businesses avoid paying overtime to certain employees, deemed managers or professionals, who make more than $455 a week, a threshold last updated in 2004.

The presidential memorandum directs the secretary of labor to raise that threshold.

The rule, first established in 1975, was originally meant to exempt high-paid white collar employees from getting overtime pay.

Now, however, only 12 percent of salaried workers are guaranteed overtime, according to the White House.

Under the current rules,  an employee could be making just over $23,000 a year and still be above the threshold.

“If you’re making $23,000, typically you’re not high-end management,” President Obama said. “It actually makes it possible for salaried workers to be paid less than the minimum wage.”

The White House will raise the threshold to somewhere between $550 and $970 a week, CBS News chief White House correspondent Major Garrett reports.

An estimated 10 million workers stand to benefit from adjustment, such as fast food managers, department store managers and computer technicians.

Businesses, especially small ones, have expressed concern about increased costs.

© 2014 CBS Interactive Inc. All Rights Reserved.


  • Thomas H. Evans

    This morning I heard an argument against this from an “HOURLY EMPLOYEE” who had given no real thought to this on her behalf. Okay, so some small businesses will be impacted, but speaking as a person who worked in management for years, some times 16 hours per day, 60 to 80 hour per week, with no additional income, why because I was a “Manager.” These company’s you are so worried about are getting rich off of our backs, their bottom lines has gone from 15% to 45% profits, and who gets to share in all of that profit; yeah that’s right, the people at the top. They have been cutting their staffs and staff benefits for years and no one complained, but because this has President Obama’s name on it , all of a sudden it is a problem. Guess what, you are going to lose your job anyway, with or without this action, why, because the bottom line profit is what matters, not you or me. So why was she complaining about something that would benefit her, she didn’t know!

  • Economics 101

    All this means is that the price of products, from automobiles to cell phones will go up. Dummies.

Comments are closed.