Millions Benefiting, and Republican Heads Exploding.

It’s a win-win.  Obama just doubled the minimum pay at which salaried employees can be denied overtime:

The Obama administration unveiled a new rule Wednesday that will make millions of middle-income workers eligible for overtime pay, a move that delivers a long-sought victory for labor groups.

The regulations, which were last updated more than a decade ago, would let full-time salaried employees earn overtime if they make up to $47,476 a year, more than double the current threshold of $23,660 a year. The Labor Department estimates that the rule would boost the pay of 4.2 million additional workers.

The change is scheduled to take effect Dec. 1.

The move caps a long-running effort by the Obama administration to aid low- and middle-income workers whose paychecks have not budged much in the last few decades, even as the top earners in America have seen their compensation soar. The last update to the rules came in 2004, and Wednesday’s announcement is the third update to the salary threshold for overtime regulations in 40 years.


About 35 percent of full-time salaried employees will be eligible for time and a half when they work extra hours under the new rule, up significantly from the 7 percent who qualify under the current threshold, according to the Labor Department.

The shift was swiftly criticized by small business owners, nonprofit groups and universities that say they may have to switch some salaried workers to hourly positions to afford the new threshold. And instead of seeing bigger paychecks, some salaried workers may be assigned fewer hours, they said.

It means that you won’t be getting free labor out of people by pretending that they are management.

And then there is this bit from the halls of overpaid administrators in education:

Some colleges said they worried they might have to cut services or raise tuition to keep up with the guidelines. Linda Harig, vice president of human resources for the University of Tennessee, estimates that the university would need to spend an additional $18 million to afford overtime pay for employees who would become eligible under the new guidelines, such as admission staff, hall directors and people with post-doctoral positions. That is the equivalent of a 4.3 percent increase in tuition, Harig said.

Because working 60 hours a week for 40 hours worth of pay is such a good thing.  And post docs aren’t basically legalized slavery.

If there additional costs, I would suggest cutting the pay people of people like, “Linda Harig, vice president of human resources for the University of Tennessee.”

Why does the head of HR need to be a VP level position? Now there is some useless fat to trim.

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