Obama Doubles Overtime Pay
The Fair Labor Standards Act is a federal law that contains rules that apply to minimum wages and overtime pay of workers. Overtime pay is federally regulated to be 1.5 times normal pay, unless an individual is exempted, which means they receive a salary of over $23,660 a year. That standard hasn’t been raised in 12 years and therefore has not kept with the rate of inflation. The Obama Administration has announced a new rule in the act that will double the overtime pay standard. It is effective December 1 and will automatically increase every three years. Critics, like House Speaker Paul Ryan, say that this rule will backfire because of the enormous cost, reducing the quantity of labor employed.
Click the links in the summary to learn more.