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The Feckless Neoliberalism of the Democrat Party

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Surely the Department of Labor in a Romney administration would have done the same thing:

Millions of Americans will get a raise beginning Dec. 1, and not because their employers will have a sudden outbreak of Christmas generosity. Rather, it will come courtesy of the Obama administration, which on Tuesday evening released the final version of a long-planned update to the nation’s overtime regulations.

Under the new Department of Labor rules, salaried employees earning less than $47,476 annually will automatically receive overtime pay when they work more than 40 hours in a week, double the current $23,660 ceiling. Administration officials estimate that more than 4 million workers will be impacted by the change, which will increase their pay by an estimated $12 billion over the next decade. “It is based on a simple proposition. If you work overtime, you should actually get paid for working overtime,” Vice President Joe Biden said on a press call.

The change in overtime eligibility rules was first proposed by the Obama administration two years ago and immediately ran into opposition from pro-business groups like the Chamber of Commerce, the National Retail Federation, and the National Restaurant Association. Opponents claim the change will be a job- and income-killer, forcing many businesses to either cut their employees’ hours, make do with less workers, or even switch more work over to automated technology that minimizes or eliminates the need for human involvement.

This is a really important change. As Olen explains, under the status quo ante, companies could easily evade overtime laws by making ordinary workers “managers” and paying them low salaries rather than by the hour, allowing employers to demand more uncompensated hours. Requiring workers with such titles and salaries to be paid something like a middle class salary is the only effective way of combating this scam.

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