The amazing progress of the last 50 years has been nothing less than miraculous. 50 years ago, the cell phone was science fiction, cancer was almost always fatal, and automobiles lasted no more than 10 years or 100,000 miles. Today, we not only have cell phones, but smart phones that put the knowledge of all humanity in your pocket, with instant communications to almost everyone, almost anywhere at a price that is within reach of the average person. Little things like microwaves, Wikipedia, and GPS have transformed the way we cook, study, and travel. In spite of all this, the Obama administration stays stuck in the past. Rather than embrace change, and take advantage of progress,he pits employees against employers, telling people to “fight for” what they should work for.

I include below the entire Obama campaign message from September 1st. (see: https://www.barackobama.com)The letter talks about a campaign to change ”overtime eligibility”. What they mean is to change the rules for who is allowed to be paid a salary versus hourly wages. Supervisory and managerial employees are normally ”exempt”, and have more flexible hours . Hourly employees must punch a clock, be paid by the hour and get overtime. The change proposed by the administration is to increase the minimum salary for  ”exempt” employees from $23,000 to $50,000 per year. In other words, if you make less than this minimum, you must punch a clock.

The most important quote from the OFA email is this:

Forty years ago, 62 percent of full-time salaried workers qualified for overtime. Today, only 8 percent qualify, …

What he’s saying is that 62 percent of full-time workers were paid hourly 40 years ago and now only 8% are hourly today. Millennials, single mothers, students, youths starting out in the job market to build their skills and prove themselves often want flexibility, not overtime pay. The want advancement, not stagnation. They want an opportunity to prove themselves and excel, not rules that keep them stuck where they are.

The next paragraph from the letter is simply not true:

President Obama has proposed an overtime rule that would provide economic security for nearly five million workers. This is one of the biggest actions we can take to help grow middle-class wages — a pathway to economic stability for many folks that need it.

How does heaping costs on employers and taking away their flexibility provide security to anyone? Employers will adjust, but it is foolish to think that businesses will simply raise salaries. Most businesses, especially small businesses, operate on tiny profit margins. They don’t have any ”extra” money. Unemployment is hardly “economic security”.

Today, businesses and employees have flexibility. These jobs can be either hourly or salaried, depending on the needs of employer and employee.

Imposing more federal overtime rules makes flexibility harder, raises employers’ costs, and provides “overtime pay” only if employees are offered overtime hours. This isn’t progress or opportunity. It will drive automation for low-level jobs. It will kill jobs and opportunity for businesses and their employees.

The sad part of this story is that many of the activists signing on to this campaign are not the people who will be affected. They are upper income professionals who believe they are doing something for “the poor”. Like the minimum wage, this new policy harms those it is intended to help. (read here, and here and here)

The overtime salary threshold is a holdover from an economy that is no more. Today’s economy is different, with different needs. The Obama administration should join us in the 21st century, rather than “fighting for” the economy of 1975.

I invite my readers to comment on this rule. Tell the federal government that it is up to employers and employees to choose whether they are to be paid a salary or by the hour, not up to federal bureaucrats. Comment here.

The larger political question is this: Is our economy driven by workers and employers, or by bureaucrats in Washington? If you believe that federal bureaucrats can make better day-to-day decisions about hours and wages than the employees and employers, this new rule is for you. If you think these things should be up to employers and employees, then you need to lodge a comment at the link provided.

The complete OFA letter is below:

Our economy is growing month after month — but too many hard-working Americans aren’t seeing the benefits of that growth. One major reason is our badly outdated overtime rule.

Forty years ago, 62 percent of full-time salaried workers qualified for overtime. Today, only 8 percent qualify, and the current overtime salary threshold is below the poverty line for a family of four — but now we have a chance to change that.

President Obama has proposed an overtime rule that would provide economic security for nearly five million workers. This is one of the biggest actions we can take to help grow middle-class wages — a pathway to economic stability for many folks that need it.

OFA is working to collect comments supporting the Department of Labor’s proposal to expand overtime eligibility — and the deadline is this Friday. Add your name to join in.

Our economy has seen substantial progress recently — unemployment is at 5.3 percent, the lowest it’s been since 2008. Businesses have created 13 million jobs over the past 65 months. Despite this progress, too many hard-working folks aren’t getting fair wages — the proposed new rule is an opportunity to take that challenge head-on.

Take a moment to think about what this rule means for millions of Americans. If you’re ready to go on record with the Department of Labor supporting stronger overtime protections, speak up today:

https://my.barackobama.com/Speak-Up-For-Stronger-Overtime-Rules

Thanks,

Jack

Jack Shapiro
National Issues Campaign Manager
Organizing for Action