Extra Pay For Overtime? It Could Happen For You Next Year – Dave’s Diary

We spent some time on the Morning News talking about President Obama’s  announced expansion of overtime pay.  The idea is to expand the range of pay under which a worker would be entitled to overtime. The new rule would take effect in 2016 and would lift the maximum salary that would be eligible for time-and-a-half overtime for each hour beyond 40 hours a week from the current upper limit of $23,660 to a new upper limit of eligibility of $50,440.

That’s more than double the salary range of workers today and it would affect effect nearly five million hourly or salaried workers.

The idea is that this will help boost the economy by giving more money to people who'll be more likely to spend it.

Ultimately, who wouldn’t like to be paid for the hours they work?  At the same time how will employers afford it?

Most Republicans are opposed to the change, as are businesses, and the National Retail Federation argues that such a change would give employers a reduced incentive to hire workers and would hurt customer service and productivity. 

It's likely the rule will be challenged both in the courts and in Congress.