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.
Mean Income: $21,380
First line Supervisor $31,820
Mean Income: $24,230
Mean Income: $24,550
Ground Keeper/ Maintenance
Mean Income: $25,670
Supervisor Janitor + Housekeeping: $37,830
Supervisor Groundwork: $45,000
# of Jobs
Wall Street Strategies, Inc. (WSSI), founded in 1991 which provides subscription analytical services to both individual and institutional investors.
TOWNHALL FINANCE DAILY
Follow Townhall Finance!
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for October 29th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for October 27th, 2014 | John Ransom