President Obama believes too many Americans are working long hours for less pay than they deserve.
So, he is proposing an expansion of overtime pay eligibility to cover an additional 5 million employees who are currently excluded under federal law.
Right now, salaried workers earning more than $23,660 dollars are ineligible. In New York State, that applies to those earning more than $34,000. The president's plan would raise that threshold to cover people earning up to $50,440 per year.
Local employment attorney Elizabeth Cordello says Obama is trying to balance the scales for workers whose wages have been stagnant.
"And to reward employers who are paying at a better rate, because right now, they're being undercut by competitors who are paying their employees much less. That's the intent. A lot of businesses are saying, 'That's a fine intent, but that won't be what the outcome is.' What you're going to see is more people working less hours," Cordello said.
Cordello believes the expansion in overtime eligibility, if enacted, would fundamentally change the way some industries structure their workforce by hiring more employees at a lower salary and turning to outside service providers to perform their work.
She says the change would especially affect sectors known for long hours and lower pay, such as the retail, fast food, restaurant and service industries.
