Tags: Barack Obama | barack obama | overtime | rules | benefits

Obama's Overtime Rule Benefits 36K Workers Making More than $100K

Image: Obama's Overtime Rule Benefits 36K Workers Making More than $100K
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By    |   Monday, 10 Aug 2015 04:52 PM

Among those who may benefit from President Barack Obama's overtime rule are thousands of workers who make more $100,000 per year, Politico is reporting.

In late June, when Obama unveiled his plan, he said that there were 5 million American workers who would qualify for overtime pay under the plan.

However, Politico is reporting that 36,000 of those workers already earn more than $100,000 per year.

The rule was written to help those who make anywhere from $23,660 to $50,440 per year, but there is reportedly a little-noticed provision in the rule that is also benefiting those who are already making six-figure salaries.

If someone makes more than $50,440, and they pass a "standard duties test" that removes administrative, professional and executive workers from the calculation, that creates a second tier of workers.

Right now, the threshold above which no one would qualify for overtime pay is $100,000, which was set by the Labor Department in 2004. The proposed rule would increase it to $122,148.

The Labor Department says it can justify this group of workers making more than $100,000 because of inflation.

But by increasing the threshold to $122,148, that means that 36,000 workers, who qualify for overtime pay under the rule, will make more than six-figures.

Tammy McCutchen, a former Labor Department official, told Politico that she's "very skeptical" of the 36,000 number.

"Usually an employer doesn't pay somebody $100,000 at that level, unless they're pretty valuable to the company," she said.

Employers have slammed the proposal, saying that it will not only cost billions of dollars to businesses but also slow the growth of workers' careers because companies will opt for more part-time and entry level workers.

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Among those who may benefit from President Barack Obama's overtime rule are thousands of workers who make more $100,000 per year, Politico is reporting.
barack obama, overtime, rules, benefits
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2015-52-10
Monday, 10 Aug 2015 04:52 PM
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