Obama Wants More Workers Eligible For Overtime Pay
MINNEAPOLIS (WCCO) -- An estimated 90,000 Minnesota workers, and about six million across the country, could soon be able to get overtime pay under a new proposal by President Obama.
Right now, salaried workers making less than $23,660 get overtime pay under federal law.
The president's proposal nearly doubles that minimum salary, so any salaried worker making less than $50,440 would get overtime.
Minneapolis attorney Grant Collins says employers need to get ready.
"Businesses are going to have to start almost immediately looking at the workers whom they don't pay overtime to and looking at whether their salary is below this $50,000 figure," Collins said.
He has written about the proposal on the Felhaber Larson Law firm's blog.
"I think it's very likely that some form of these regulations will go into effect and will become law," Collins said.
The U.S. Chamber of Commerce strongly criticized the proposal, saying, "it will negatively impact small businesses and drastically limit employment opportunities."
The Minnesota Chamber of Commerce said they had no one available to comment.
Critics say the proposal would also hurt non-profits, where hours tend to be long and salaries low.
But not all businesses are critical. Naomi Williamson is the former owner of Sanctuary Restaurant, and is now a private business consultant.
"I've never not paid overtime," Williamson said. "We want to give them a little extra for working those long weeks."
The president's proposal also calls for the minimum salary of just over $50,000 to be increased over time, although he does not offer specifics on this issue.
Supporters and critics of this proposal expect challenges both in court and possibly in Congress.
This could go into effect as soon as early 2016 -- barring a court or Congressional challenge.
