U.S. President Barack Obama aims to change overtime rules so American businesses would pay more overtime fee to millions of workers.
Overtime pay increase
Obama plans to order his Labor Department to recommend regulations that would increase the overtime pay for millions of fast-food managers, loan officers, computer technicians, and others whom many companies classify as “executive or professional” employees.
This is the latest move by Obama’s administration to talk to companies that have had increasing earnings even as salaries have stagnated.
White House officials said Obama’s decision to use his authority to change the country’s overtime rules is likely to be seen as a challenge to Republicans in Congress.
Impact on employers
The move is expected to anger the business community, which would increase burdens on employers.
“If they push through something to make a certain class of workers more expensive, something will happen to adjust,” said Daniel Mitchell of Cato Institute, who argued that business owners might cut pay or use fewer workers.