White House plans to force business to pay more overtime

Published December 20, 2015

President Obama early next year will try to force employers to pay their workers more overtime by limiting which workers can be called managers.

The administration in February is set to announce a proposed new rule under the Fair Labor Standards Act that would designate who is an “exempt employee” who cannot claim overtime for working more than 40 hours a week.

The president and administration officials have indicated they plan to increase the $23,000 minimum amount a worker must make before his employer can opt to exempt him from federal overtime rules — also known as the “white-collar exemption.” The administration has not released details, though.

Groups such as the liberal Center for American Progress, which has close ties to the White House, have called for the threshold to be raised to $50,000. Business groups are hoping it won’t be that high.

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