Charles Payne

President Obama continues his push to tweak free market forces and buy votes with an executive move that will force businesses to pay extra for overtime work of certain salaried employees.

Managers earning more than $455 a week are not eligible for overtime pay, even if those "managers" are really shift supervisors at a 7-11 or fast food restaurant. The number of potential people impacted by this change is hard to quantify.

The law governing oversight is rooted in the Fair Labor Standards Act 1938. In 1975, the Department of Labor set the minimum to $250 a week, which raised it to the current level of $455 by George Bush in 1994.

The question is how much will President Obama hike the new level? Adjusted for inflation, the 1975 level would currently be $1,086 - that's a huge raise!

The fact is the message will have the typical mix of envy-inducing flame throwing, suggesting entire industries are cheating people now with phony titles. Supervisors in low-paying jobs already make substantially more than the median income, but even they could be up for a raise in the near future. The most important point is, contrary to suggestions from President Obama, there are legit supervisors and managers, who make more money than their counterparts.

It is very unlikely that they would give up their titles and extra income for overtime work that may not materialize, and even at inflated levels, match their current earnings power.

Food Workers
Mean Income: $21,380
Supervisor: $33,390
First line Supervisor $31,820
Managers: $52,580

Farmers
Mean Income: $24,230
Manager: $73,730

Personal Care
Mean Income: $24,550
Supervisor: $39,760

Ground Keeper/ Maintenance
Mean Income: $25,670
Supervisor: $40,500
Supervisor Janitor + Housekeeping: $37,830
Supervisor Groundwork: $45,000

Job/Title

# of Jobs

Median Income

Chief Executives

255,940

$176,840

Operations Managers

1,899,460


Charles Payne

Charles V. Payne is a regular contributor to the Fox Business and Fox News Networks. He is also the Chief Executive Officer and Principle Analyst of Wall Street Strategies, Inc. (WSSI), founded in 1991 which provides subscription analytical services to both individual and institutional investors.
TOWNHALL FINANCE DAILY

Get the best of Townhall Finance Daily delivered straight to your inbox

Follow Townhall Finance!