Expect Obama to Push for Expanded Overtime

Skip Sperry Blog Leave a Comment

Today, President Obama is expected to direct the Department of Labor to use its rule-making authority to expand overtime coverage to more American workers.  Under overtime exemptions executive, professional, and administrative workers who earn more than $455 per week may be exempt from overtime pay if they meet certain job-related criteria.  

President Obama will likely ask the DoL to increase that weekly threshold which would increase the number of workers entitled to overtime pay.  The salary level was set at $250 per week by the DoL in 1975.  It was increased in 2004 by President George W. Bush to $455.  The Whitehouse says that adjusting for inflation from 1975, the weekly salary threshold should be about $970.  If adjusted from the 2004 level, the current threshold should be around $553 per week. President Obama will likely ask the DoL to adjust the weekly threshold to somewhere within that salary range of $553-$970.  

Look for future updates as the DoL responds to the President’s direction.

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