Restoring Overtime Pay

PBO Restoring Overtime Pay

Middle Class Economics Rewarding Hard Work by Restoring Overtime Pay

Middle class economics means that a hard day’s work should lead to a fair day’s pay.  For much of the past century, a cornerstone of that promise has been the 40-hour workweek.  But for decades, industry lobbyists have bottled up efforts to keep these rules up to date, leaving millions of Americans working long hours, and taking them away from their families without the overtime pay that they have earned. Business owners who treat their employees fairly are being undercut by competitors who don’t.

Today, President Obama announced that the Department of Labor will propose extending overtime pay to nearly 5 million workers. The proposal would guarantee overtime pay to most salaried workers earning less than an estimated $50,440 next year. The number of workers in each state who would be affected by this proposal can be found here.

The salary threshold guarantees overtime for most salaried workers who fall below it, but it is eroded by inflation every year.  It has only been updated once since the 1970s, when the Bush Administration published a weak rule with the strong support of industry.  Today, the salary threshold remains at $23,660 ($455 per week), which is below the poverty threshold for a family of four, and only 8 percent of full-time salaried workers fall below it.

President Obama directed the Secretary of Labor to update regulations relating to who qualifies for overtime pay so that they once again reflect the intent of the Fair Labor Standards Act, and to simplify the rules so they’re easier for workers and businesses to understand and apply.  Following months of extensive consultations with employers, workers, unions, and other stakeholders, the Department of Labor developed a proposal that would:

  • Raise the threshold under which most salaried workers are guaranteed overtime to equal the 40th percentile of weekly earnings for full-time salaried workers.  As proposed, this would raise the salary threshold from $455 a week ($23,660 a year) – below the poverty threshold for a family of four – to a projected level of $970 a week ($50,440 a year) in 2016.
  • Extend overtime pay and the minimum wage to nearly 5 million workers within the first year of its implementation, of which 56 percent are women and 53 percent have at least a college degree.
  • Provide greater clarity for millions more workers so they – and their employers – can determine more easily if they should be receiving overtime pay.
  • Prevent a future erosion of overtime and ensure greater predictability by automatically updating the salary threshold based on inflation or wage growth over time.

Learn more: https://www.whitehouse.gov/the-press-office/2015/06/30/fact-sheet-middle-class-economics-rewarding-hard-work-restoring-overtime

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A Hard Day’s Work Deserves a Fair Day’s Pay

6/29/2015 9:16 pm EDT Barack Obama – huffingtonpost

It’s been a good few days for America.

On Thursday, the Supreme Court reaffirmed the Affordable Care Act. It is here to stay.

And, Democrats and Republicans in Congress paved the way for the United States to rewrite the rules of global trade to benefit American workers and American businesses.

On Friday, the Court recognized the Constitutional guarantee of marriage equality. With that ruling, our union became a little more perfect — a place where more people are treated equally, no matter who they are or who they love.

These steps build upon America’s steady progress in recent years. Out of the depths of recession, we’ve emerged ready to write our own future. Our businesses have created 12.6 million new jobs over the past 63 months — the longest streak on record. More than 16 million Americans have gained health insurance. More kids are graduating from high school and college than ever before.

But more work lies ahead, if we are to succeed in making sure this recovery reaches all hardworking Americans and their families.

We’ve got to keep expanding access to affordable health care. Right now, 22 states haven’t expanded Medicaid — even though, under the ACA, they can. We’ll keep encouraging those governors to do the right thing for their constituents. And we’re making sure people know all the ways that they can benefit from the ACA. Wednesday, I’ll go to Tennessee to meet Americans whose lives have been changed by this law, and to talk about how, instead of refighting settled battles of the past, we can move forward together.

We’ve got to keep making sure hard work is rewarded. Right now, too many Americans are working long days for less pay than they deserve. That’s partly because we’ve failed to update overtime regulations for years — and an exemption meant for highly paid, white collar employees now leaves out workers making as little as $23,660 a year — no matter how many hours they work.

This week, I’ll head to Wisconsin to discuss my plan to extend overtime protections to nearly 5 million workers in 2016, covering all salaried workers making up to about $50,400 next year. That’s good for workers who want fair pay, and it’s good for business owners who are already paying their employees what they deserve — since those who are doing right by their employees are undercut by competitors who aren’t.

That’s how America should do business. In this country, a hard day’s work deserves a fair day’s pay. That’s at the heart of what it means to be middle class in America.

For more: http://www.huffingtonpost.com/barack-obama/a-hard-days-work-deserves-a-fair-days-pay_b_7691922.html

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Additional Information

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PBO Higher Wages SOTU quote

PBO @ UW-La Crosse

Thursday, July 2, 2015 – 2:20 PM ET
President Obama delivers remarks on the economy
Recreational Eagle Center, University of Wisconsin-La Crosse,
La Crosse, Wisconsin

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20 thoughts on “Restoring Overtime Pay

  1. WH

    Thursday, July 2, 2015

    All Times Eastern

    President Obama receives the presidential daily briefing

    President Obama names 108 mathematics and science teachers as recipients of the prestigious Presidential Award for Excellence in Mathematics and Science Teaching
    White House

    7:00 AM
    8:00 AM
    9:00 AM
    10:00 AM
    11:00 AM
    President Obama departs White House
    South Lawn

    12:00 PM
    1:00 PM
    1:45 PM
    President Obama arrives La Crosse, Wisconsin
    La Crosse Regional Airport

    2:00 PM
    2:30 PM
    President Obama delivers remarks on the economy
    Recreational Eagle Center, University of Wisconsin-La Crosse, La Crosse, Wisconsin

    3:00 PM
    4:00 PM
    4:15 PM
    President Obama departs Wisconsin
    La Crosse Regional Airport

    5:00 PM
    6:00 PM
    6:20 PM
    President Obama arrives Joint Base Andrews

    7:00 PM
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  2. Restoring Overtime Pay

    dol.gov

    Today the Department of Labor has announced a proposed rule that would extend overtime protections to nearly 5 million white collar workers within the first year of its implementation. Failure to update the overtime regulations has left an exception to overtime eligibility originally meant for highly-compensated executive, administrative, and professional employees now applying to workers earning as little as $23,660 a year. For example, a convenience store manager, fast food assistant manager, or some office workers may be expected to work 50 or 60 hours a week or more, making less than the poverty level for a family of four, and not receive a dime of overtime pay. Today’s proposed regulation is a critical first step toward ensuring that hard-working Americans are compensated fairly and have a chance to get ahead.

    Although the Office of Management and Budget (OMB) has reviewed and approved the Notice of Proposed Rulemaking (NPRM), the document has not yet been published in the Federal Register. The NPRM that appears in the Federal Register will specify the dates of the public comment period and may contain minor formatting differences in accordance with Office of the Federal Register publication requirements. The OMB-approved version is being provided as a convenience to the public and this website will be updated with the Federal Register’s published version when it becomes available.

    Upon publication of the proposed rule, interested parties will be invited to submit written comments on the proposed rule at http://www.regulations.gov. Only comments received during the comment period identified in the Federal Register published version of the NPRM will be considered part of the rulemaking record.

    • A Hard Day’s Work Deserves a Fair Day’s Pay

      6/29/2015 9:16 pm EDT Barack Obama – huffingtonpost

      It’s been a good few days for America.

      On Thursday, the Supreme Court reaffirmed the Affordable Care Act. It is here to stay.

      And, Democrats and Republicans in Congress paved the way for the United States to rewrite the rules of global trade to benefit American workers and American businesses.

      On Friday, the Court recognized the Constitutional guarantee of marriage equality. With that ruling, our union became a little more perfect — a place where more people are treated equally, no matter who they are or who they love.

      These steps build upon America’s steady progress in recent years. Out of the depths of recession, we’ve emerged ready to write our own future. Our businesses have created 12.6 million new jobs over the past 63 months — the longest streak on record. More than 16 million Americans have gained health insurance. More kids are graduating from high school and college than ever before.

      But more work lies ahead, if we are to succeed in making sure this recovery reaches all hardworking Americans and their families.

      We’ve got to keep expanding access to affordable health care. Right now, 22 states haven’t expanded Medicaid — even though, under the ACA, they can. We’ll keep encouraging those governors to do the right thing for their constituents. And we’re making sure people know all the ways that they can benefit from the ACA. Wednesday, I’ll go to Tennessee to meet Americans whose lives have been changed by this law, and to talk about how, instead of refighting settled battles of the past, we can move forward together.

      We’ve got to keep making sure hard work is rewarded. Right now, too many Americans are working long days for less pay than they deserve. That’s partly because we’ve failed to update overtime regulations for years — and an exemption meant for highly paid, white collar employees now leaves out workers making as little as $23,660 a year — no matter how many hours they work.

      This week, I’ll head to Wisconsin to discuss my plan to extend overtime protections to nearly 5 million workers in 2016, covering all salaried workers making up to about $50,400 next year. That’s good for workers who want fair pay, and it’s good for business owners who are already paying their employees what they deserve — since those who are doing right by their employees are undercut by competitors who aren’t.

      That’s how America should do business. In this country, a hard day’s work deserves a fair day’s pay. That’s at the heart of what it means to be middle class in America.

      For more: http://www.huffingtonpost.com/barack-obama/a-hard-days-work-deserves-a-fair-days-pay_b_7691922.html

    • President Obama delivers remarks on the economy at La Crosse, Wisconsin

      Published on Jul 2, 2015

      President Obama delivers remarks on the progress we’ve made over the past six years at University of Wisconsin at La Crosse, WI. July 2, 2015.

    • I truly believe that proper overtime pay will help produce more loyal employees. Many times people leave otherwise good jobs because they need more pay.

      • Hi vitaminlover,

        I agree with you. It is good to know that our president is watching out for us.

  3. The Civil Rights Act of 1964 – 51st Anniversary

    The Civil Rights Act of 1964 (Pub.L. 88–352, 78 Stat. 241, enacted July 2, 1964) is a landmark piece of civil rights legislation in the United States that outlawed major forms of discrimination against racial, ethnic, national and religious minorities, and women. It ended unequal application of voter registration requirements and racial segregation in schools, at the workplace and by facilities that served the general public (known as “public accommodations”).

    Powers given to enforce the act were initially weak, but were supplemented during later years. Congress asserted its authority to legislate under several different parts of the United States Constitution, principally its power to regulate interstate commerce under Article One (section 8), its duty to guarantee all citizens equal protection of the laws under the Fourteenth Amendment and its duty to protect voting rights under the Fifteenth Amendment. The Act was signed into law by President Lyndon B. Johnson, who would later sign the landmark Voting Rights Act into law.

    Source: http://en.wikipedia.org/wiki/Civil_Rights_Act_of_1964

    • June 25, 2013

      Statement by the President on the Supreme Court Ruling on Shelby County v. Holder

      “I am deeply disappointed with the Supreme Court’s decision today. For nearly 50 years, the Voting Rights Act – enacted and repeatedly renewed by wide bipartisan majorities in Congress – has helped secure the right to vote for millions of Americans. Today’s decision invalidating one of its core provisions upsets decades of well-established practices that help make sure voting is fair, especially in places where voting discrimination has been historically prevalent.

      As a nation, we’ve made a great deal of progress towards guaranteeing every American the right to vote. But, as the Supreme Court recognized, voting discrimination still exists. And while today’s decision is a setback, it doesn’t represent the end of our efforts to end voting discrimination. I am calling on Congress to pass legislation to ensure every American has equal access to the polls. My Administration will continue to do everything in its power to ensure a fair and equal voting process.”

    • Two years ago, the Supreme Court gutted the VRA. Senator Patrick Leahy and Congressman John Lewis have a plan to fix that.

      June 23, 2015 Ari Berman – TheNation

      Two years ago, on June 25, 2013, in Shelby County v. Holder, the Supreme Court invalidated the centerpiece of the Voting Rights Act. Tomorrow, congressional Democrats will introduce an ambitious new bill that would restore the important voting-rights protections the Supreme Court struck down. The Voting Rights Advancement Act of 2015 would compel states with a well-documented history of recent voting discrimination to clear future voting changes with the federal government, require federal approval for voter ID laws, and outlaw new efforts to suppress the growing minority vote.

      The legislation will be formally introduced tomorrow by Senator Patrick Leahy of Vermont, the ranking Democrat on the Senate Judiciary Committee, and leaders of the Black Caucus, Hispanic Caucus, and Asian Pacific American Caucus in the House. Civil-rights icon Representative John Lewis will be a co-sponsor. The bill is much stronger than the Voting Rights Amendment Act of 2014 (VRAA), Congress’s initial response to the Supreme Court’s decision, which garnered bipartisan support in the House but was not embraced by the congressional Republican leadership, which declined to schedule a hearing, let alone a vote, on the bill.

      “The previous bill we did in a way to try and get bipartisan support—which we did,” Senator Leahy told me. “We had the Republican majority leader of the House [Eric Cantor] promise us that if we kept it like that it would come up for a vote. It never did. We made compromises to get [Republican] support and they didn’t keep their word. So this time I decided to listen to the voters who had their right to vote blocked, and they asked for strong legislation that fully restores the protections of the VRA.”

      The 2016 election will be the first in 50 years where voters will not have the full protections of the VRA, which adds urgency to the congressional effort. Since the Shelby decision, onerous new laws have been passed or implemented in states like North Carolina and Texas, which have disenfranchised thousands of voters, disproportionately those of color. In the past five years, 395 new voting restrictions have been introduced in 49 states, with half the states in the country adopting measures making it harder to vote. “If anybody thinks there’s not racial discrimination in voting today, they’re not really paying attention,” Senator Leahy said.

      In the Shelby County ruling, the Supreme Court’s conservative majority struck down Section 4 of the VRA, the formula that compelled specific states with a long history of voting discrimination to approve their voting changes with the federal government under Section 5 of the VRA. Section 4 covered nine states (Alabama, Alaska, Arizona, Georgia, Louisiana, Mississippi, South Carolina, Texas, and Virginia) and parts of six others (California, Florida, Michigan, New York, North Carolina, South Dakota) based on evidence of voting discrimination against blacks and other minority groups dating back to the 1960s and 1970s.

      The Voting Rights Advancement Act restores Section 5 of the VRA by requiring states with 15 voting violations over the past 25 years, or 10 violations if one was statewide, to submit future election changes for federal approval. This new formula would initially cover 13 states: Alabama, Arkansas, Arizona, California, Florida, Georgia, Louisiana, Mississippi, New York, North Carolina, South Carolina, Texas, and Virginia. (The VRAA of 2014 covered only Georgia, Louisiana, Mississippi, and Texas.) Coverage would last for a 10-year period.

      For more: http://www.thenation.com/article/210673/congressional-democrats-introduce-ambitious-new-bill-restore-voting-rights-act?utm_source=twitter&utm_medium=socialflow#

  4. Episcopalians vote to allow gay marriage in churches

    7/1/15 By BRADY McCOMBS and RACHEL ZOLL – Associated Press

    SALT LAKE CITY (AP) — Episcopalians voted overwhelmingly Wednesday to allow religious weddings for same-sex couples, solidifying the church’s embrace of gay rights that began more than a decade ago with the pioneering election of the first openly gay bishop.

    The vote came in Salt Lake City at the Episcopal General Convention, just days after the U.S. Supreme Court legalized gay marriage nationwide. It passed in the House of Deputies, the voting body of clergy and lay participants at the meeting. The House of Bishops had approved the resolution Tuesday by 129-26 with five abstaining.

    The Very Rev. Brian Baker of Sacramento said the church rule change was the result of a nearly four-decade long conversation that has been difficult and painful for many. Baker, chair of the committee that crafted the changes, said church members have not always been kind to one another but that the dynamic has changed in recent decades.

    “We have learned to not only care for, but care about one other,” Baker said. “That mutual care was present in the conversations we had. Some people disagreed, some people disagreed deeply, but we prayed and we listened and we came up with compromises that we believe make room and leave no one behind.”

    Baker said the House of Bishops prayed and debated the issue for five hours earlier this week before passing it on to the House of Deputies.

    The Rev. Bonnie Perry of Chicago, a lesbian married to a fellow Episcopal priest, hugged fellow supporters on Wednesday and said, “We’re all included now.”

    “For the lesbian, gay, bisexual and transgender people in our congregations now know under the eyes of God and in every single state in this blessed country, they are welcome to receive all the sacraments,” she said.

    For more: http://news.yahoo.com/episcopalians-vote-allowing-gay-marriage-churches-064849720.html

  5. Jobs growth remains steady, unemployment drops

    7/02/15 By Steve Benen – maddowblog

    As the calendar year reaches the halfway point, most economic projections point to steady job growth. As it turns out, that’s pretty much what we have.

    The new report from Bureau of Labor Statistics shows the U.S. economy added 223,000 jobs in June, roughly in line with expectation. The overall unemployment rate inched lower to 5.3%, its lowest point since April 2008, more than seven years ago.

    The revisions, however, were less encouraging. April’s job totals were revised down, from 221,000 to 187,000, while May’s numbers were also lowered, dropping from 280,000 to 254,000. Combined, that’s a loss of 60,000. Also discouraging is the fact that the jobs report didn’t point to increased wage growth.

    That said, there was also a big drop in long-term unemployment, which was more heartening. The overall takeaway is that this is a decent jobs report – not great, not bad.

    The U.S. has added 2.9 million jobs over the last 12 months. June was the 57th consecutive month of positive job growth – the best stretch since 1939 – and the 64th consecutive month in which we’ve seen private-sector job growth, which is the longest on record.

    For more: http://www.msnbc.com/rachel-maddow-show/jobs-growth-remains-steady-unemployment-drops

  6. Consumer Comfort in U.S. Increases to Highest Level Since April

    July 2, 2015 — 6:45 AM PDT – bloomberg

    Consumer sentiment advanced last week to the highest level since April as Americans’ attitudes about their finances and the buying climate brightened further.

    The Bloomberg Consumer Comfort Index increased by 1.4 points to 44 in the period ended June 28. In the past three weeks, the gauge has recouped half of its 7.8 point decline from an eight-year high in mid-April.
    “Its recent track has correlated very closely with gasoline prices, now easing after a sharp springtime run-up,” said Gary Langer, president of Langer Research Associates LLC in New York, which produces the data for Bloomberg, said in a statement.

    Prices at the gas pump have ebbed after advancing about 40 cents a gallon from early April to mid-June, contributing to the biggest two-week improvement in buying attitudes in more than three years. Stronger employment growth, a pickup in incomes and rising home prices are keeping households more upbeat about their finances and the economy.

    The comfort index’s buying climate gauge, which measures whether now is a good time to purchase goods and services, increased this week to 38.9 from 37. The 4.7 point gain in the past two weeks is the biggest since March 2012.

    Part of the reason for the increase is explained by stable fuel costs. The nationwide average price of a gallon of gasoline is holding below $2.80, based on data from the auto group AAA.

    For more: http://www.bloomberg.com/news/articles/2015-07-02/consumer-comfort-in-u-s-increases-to-highest-level-since-april

  7. July 01, 2015

    Readout of the President’s Call with Prime Minster Matteo Renzi of Italy

    The President spoke today with Prime Minster Matteo Renzi of Italy regarding developments in Greece. They agreed on the importance of all sides working to put Greece back on a path of reforms and financing that leads to growth and debt sustainability within the Eurozone. The leaders noted that their teams are in close contact and are monitoring economic developments in Greece as well as broader financial markets. They also discussed the importance of continued close coordination on counterterrorism.

  8. July 02, 2015

    Readout of Vice President Biden’s Call with Prime Minister Al-Abadi of Iraq

    Vice President Biden spoke with Prime Minister Haider Al-Abadi today to discuss ongoing efforts to defeat ISIL in Iraq. The Vice President reaffirmed full U.S. support for the Iraqi Government’s ongoing efforts to counter ISIL, including the mobilization of local tribal fighters. The Vice President applauded recent battlefield successes by those fighters and the contributions of U.S. military advisors in that effort. The Vice President and Prime Minister discussed the importance of having all Iraqi communities continuing to work together to fight ISIL.

  9. West Wing Week: 07/03/15 or, “Amazing Grace”

    Published on Jul 2, 2015

    This week, the President signed a bipartisan trade deal, welcomed the President of Brazil to the White House–and showed her one of our national treasures–hosted 50 girls in green on the South Lawn for a campout to celebrate the great outdoors, answered questions about healthcare in Tennessee and online, and traveled to Wisconsin to announce new overtime protections for hard-working Americans. That’s June 26th to July 2nd or, “Amazing Grace.”

  10. WH

    Friday, July 3, 2015

    All Times Eastern

    President Obama receives the presidential daily briefing

    President Obama speaks at a naturalization ceremony for active-duty service members and civilians

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  11. *******************
    THIS POST IS NOW CLOSED NBLB

    Come on over to my newest post titled: ” Independence Day 2015″

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