Career Calling

June 19, 2014

Expanding Overtime

 

Huffington Post reports that 9 Senate Democrats are proposing to expand the guidelines for what workers will receive overtime for working more than 40 hours in a week. A bill proposed by retiring Senator Tom Harkin of Iowa would raise the very low threshold used to make employees exempt (not eligible for overtime). The current limit is $455 per week (about $22,000 annual). The Democrats would phase in increases that would raise the limit to $1,090 per week (about $54,000 annual).

 

This is a great proposal because it would be an immediate improvement for those making more than the minimum wage, and it would eventually even help the middle class. Critics will say that employers will just cut hours and make more positions part-time. The problem with that claim is that many companies who have tried to do this are getting what they pay for: bad work from employees who will leave the first chance they get. Given the current political climate, this bill – like the minimum wage – has almost no chance of passing. What it does do is change the conversation. Democrats are trying to find ways to help the middle class. Hopefully, some Republicans will join with them and do the right thing for hard working Americans.

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