Tuesday, June 30, 2015

Obama wants to raise floor that makes exempt workers eligible for overtime pay


President Obama has proposed making about 5 million more salaried or exempt workers eligible for overtime, by raising the floor for eligibility from the antiquated $23,660 a year to $50.400, as explained in this CNN Money story .

Commentary has pointed out that sometimes fast food places appoint people “managers” and they wind up making less per hour than their direct reports, because of unpaid overtime.

Salaried people may work unpaid overtime when others don’t come to work, and that can exacerbate the paid family leave problem.

Of course, this program probably won’t affect IT workers much (maybe college interns) but I’ve covered it here because the “exempt” issue has been brought up before. 
   
There is plenty of objection from trade groups for small businesses, as in this Washington Post story by Amrita Jayakumar, here.
   
Sometimes companies make people into managers with direct reports without their asking for it or consent.  This happened to me once, in 1988. It has the potential of creating “conflict of interest” issues.  

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