Skip to main content
Tags: overtime | threshold | pros and cons

Pros and Cons of Upping Overtime Threshold

By    |   Friday, 25 September 2015 03:59 PM EDT

With President Barack Obama’s latest overtime proposal, the debate over whether or not to increase the overtime salary threshold has come front and center.

In an op-ed published in The Huffington Post, Obama stated his plan to increase the overtime salary threshold from $23,600 per year to $50,400 in an effort to make fair the payment of workers.

The proposal has come under scrutiny, especially from businesses.

Here are the pros and cons of the plan to increase the threshold:

Urgent: Do You Think the Minimum Wage Should Be Raised?


1. More people could earn more money.

According to Politico, the proposal could affect as many as 10 million Americans, allowing them to automatically qualify for overtime pay and earn more money when they work more than 40 hours a week.

KOSU reported that the greatest benefactors would be people in tax preparation, real estate, food service managing, and financial specialists, earning a 12 percent raise on average for their 4.7 average overtime hours.

2. It could help shrink the gap between the wealthy and less wealthy in the country.

According to, while increases in the minimum wage look to benefit the lowest-earning laborers, increasing the overtime threshold and pay work to economically advance the middle class.


1. It could affect hiring.

Opponents to the proposal voice a main concern that in a country with already high rates of unemployment and a sizeable population of those who have given up on searching for a job, this plan will further hinder prospects of hiring workers, Gaebler reported.

Tell Us: Should the Government Raise the Minimum Wage?

2. Workers that qualify for overtime may have decreased hours.

Some speculate that managers and business owners will reschedule to give higher-paid workers more hours while employees who are paid less and may qualify for overtime get less scheduled hours.

3. Salaries may decrease.

If managers and supervisors become eligible with the increase in the salary threshold, their time-and-a-half pay may cause their salaries to decrease in order to compensate for the extra cost, according to FOX Business.

© 2024 Newsmax. All rights reserved.

With President Barack Obama's latest overtime proposal, the debate over whether or not to increase the overtime salary threshold has come front and center.
overtime, threshold, pros and cons
Friday, 25 September 2015 03:59 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.

PLEASE NOTE: All information presented on is for informational purposes only. It is not specific medical advice for any individual. All answers to reader questions are provided for informational purposes only. All information presented on our websites should not be construed as medical consultation or instruction. You should take no action solely on the basis of this publication’s contents. Readers are advised to consult a health professional about any issue regarding their health and well-being. While the information found on our websites is believed to be sensible and accurate based on the author’s best judgment, readers who fail to seek counsel from appropriate health professionals assume risk of any potential ill effects. The opinions expressed in and do not necessarily reflect those of Newsmax Media. Please note that this advice is generic and not specific to any individual. You should consult with your doctor before undertaking any medical or nutritional course of action.


Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
Get the NewsmaxTV App for iOS Get the NewsmaxTV App for Android Scan QR code to get the NewsmaxTV App
America's News Page
© Newsmax Media, Inc.
All Rights Reserved