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Obama plans to change overtime pay

Associated Press • Aug 27, 2014 at 3:12 PM

The rules, which would not likely take effect until 2015, are aimed at workers currently designated as supervisory employees but who are exempt from overtime because they get paid a salary of more than $455 a week.

Obama plans to order his Labor Department to recommend regulations that would increase that salary threshold and change the definition of what constitutes a supervisor.

The president’s directive, to be announced today, leaves the details of a proposed rule to the Labor Department, which is not expected to come up with a recommendation before the fall. Still, it drew swift protests from Republicans, who complained he was sidestepping Congress and from the business community, who said such rules would increase burdens on employers.

“How does he expect us to work with him?” complained Sen. John McCain, R-Ariz. “It’s just a poisonous relationship”

The salary limit separating those who get overtime and those who don’t was increased to $455 in 2004 during the Bush administration. At the time, it hadn’t been increased since the mid-1970s.

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