Full Text Obama Presidency June 30, 2015: Middle Class Economics Rewarding Hard Work by Restoring Overtime Pay

POLITICAL TRANSCRIPTS

OBAMA PRESIDENCY & THE 114TH CONGRESS:

FACT SHEET: Middle Class Economics Rewarding Hard Work by Restoring Overtime Pay

Source: WH, 6-30-15

“Of course, nothing helps families make ends meet like higher wages…We still need to make sure employees get the overtime they’ve earned.”

– President Barack Obama, State of the Union Address, January 20, 2015

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.

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