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Overtime Pay for Overtime Hours

President Obama is capitalizing on his great week by revising the rules that govern overtime pay. These rules are set by the White House. The last administration set the managerial pay threshold at only $23,360. This meant that businesses could deem very low-paid hourly workers as managers and disqualify them from receiving overtime. This added work without pay kept many families below the poverty level. The changes will set the threshold at approximately $1,000 a week and prevent companies from exploiting their employees in slave-like working conditions.  Mann points out that these employers will now have to justly compensate these workers for the hours in which they toil or let them off at appropriate times.

The last time the rate was adjusted was almost eleven years ago. The erosion of the feasibility of the rate is somewhat attributed to inflation and simply malice on the part of the prior administration. However, it could have been spun politically to reflect malice toward the American worker by the Bush administration. Some estimates show that this will improve the conditions for approximately 5 million workers, but other credible estimates go as far as 15 million. Of course, republicans pulled out the doom and gloom lines like the job creators will not like sharing their immense profits and that businesses have the right to exploit their workers, but all credible economists think the move is long overdue and that more efforts should be directed toward the middle class.