President Obama wants you to pocket more overtime pay


Need a raise? Don't ask your boss; ask Obama. On Tuesday, the White House initiated motions to reform overtime pay laws via executive action, which, if successful, could result in a sizable pay bump for millions of Americans.
As overtime laws stand now, certain categories of workers are excluded from the monetary benefits of working long hours, such as highly compensated executives and professionals. Additionally, there exists a "threshold" salary for receiving overtime — anyone who makes less than the predetermined annual income (currently $23,660) is automatically entitled to overtime, regardless of management status. In these conditions, many companies are able to skirt paying their low-salaried employees by calling them a manager, even if they are stocking groceries for $24,000 a year for 80 hours a week.
This salary threshold is the center of Obama's reform. The administration certainly plans to raise it — the question is how high. Some House Democrats have suggested raising the magic number quite substantially, up to $69,000, which would "cover about two-thirds of salaried workers," as The Huffington Post reports. Now, only 11 percent of salary earners qualify for overtime pay.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"President Obama believes that if you work hard, you should be rewarded for your effort," said a Department of Labor official.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Stephanie is an editorial assistant at TheWeek.com. She has previously worked for USA Today and Modern Luxury Media.
-
Trump picks conservative BLS critic to lead BLS
speed read He has nominated the Heritage Foundation's E.J. Antoni to lead the Bureau of Labor Statistics
-
Trump takes over DC police, deploys National Guard
Speed Read The president blames the takeover on rising crime, though official figures contradict this concern
-
Trump sends FBI to patrol DC, despite falling crime
Speed Read Washington, D.C., 'has become one of the most dangerous cities anywhere in the world,' Trump said
-
Trump officials reinstating 2 Confederate monuments
Speed Read The administration has plans to 'restore Confederate names and symbols' discarded in the wake of George Floyd's 2020 murder
-
Trump nominates Powell critic for vacant Fed seat
speed read Stephen Miran, the chair of Trump's Council of Economic Advisers and a fellow critic of Fed chair Jerome Powell, has been nominated to fill a seat on the Federal Reserve Board of Governors
-
ICE scraps age limits amid hiring push
Speed Read Anyone 18 or older can now apply to be an ICE agent
-
Trump's global tariffs take effect, with new additions
Speed Read Tariffs on more than 90 US trading partners went into effect, escalating the global trade war
-
House committee subpoenas Epstein files
Speed Read The House Oversight Committee has issued a subpoena to the Justice Department for its Jeffrey Epstein files with an Aug. 19 deadline