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.
-
July 6 editorial cartoons
Cartoons Sunday’s political cartoons include paying for school lunch by enlisting, and the banality of evil
-
5 biting editorial cartoons about 'Alligator Alcatraz'
Cartoons Artists take on dangerous green things, historical precedent, and more
-
A journey into the deep past on beautiful Arran
The Week Recommends New Unesco Global Geopark played a 'key role' in the birth of modern geological science
-
Judge blocks Trump's asylum ban at US border
Speed Read The president violated federal law by shutting down the US-Mexico border to asylum seekers, said the ruling
-
Thai court suspends prime minister over leaked call
Speed Read Prime Minister Paetongtarn Shinawatra has been suspended, pending an ethics investigation
-
Senate passes GOP megabill after Alaska side deal
The pivotal yes vote came from Sen. Lisa Murkowski, whose support was secured following negotiated side deals for her home state Alaska
-
Trump sues LA over immigration policies
Speed Read He is suing over the city's sanctuary law, claiming it prevents local law enforcement from cooperating with federal immigration authorities
-
Obama, Bush and Bono eulogize USAID on final day
Speed Read The US Agency for International Development, a humanitarian organization, has been gutted by the Trump administration
-
The last words and final moments of 40 presidents
The Explainer Some are eloquent quotes worthy of the holders of the highest office in the nation, and others... aren't
-
Senate advances GOP bill that costs more, cuts more
Speed Read The bill would make giant cuts to Medicaid and food stamps, leaving 11.8 million fewer people with health coverage
-
Canadian man dies in ICE custody
Speed Read A Canadian citizen with permanent US residency died at a federal detention center in Miami