The New York Times is reporting that tomorrow President Obama “will direct the Labor Department to revamp its regulations to require overtime pay for several million additional fast-food managers, loan officers, computer technicians and others whom many businesses currently classify as ‘executive or professional’ employees to avoid paying them overtime, according to White House officials briefed on the announcement.” The attempt to broaden overtime pay is another step in Obama’s attack on what he perceives to be a crisis caused by economic inequality in the United States. The President has the authority to revise the rules that implement the Fair Labor Standards Act, originally passed in 1938. Any changes to the regulations are subject to public comment before the Labor Department approves the final changes. The proposed change comes at the same time Republicans in Congress are fighting his proposal to raise the minimum wage to $10.10 per hour.
Practice pointer. This proposal is just one of many that have and will take place during the election year that impact employers in Alabama and around the country. If changes in the FLSA regulations are approved by the DOL, this will have a major impact on the bottom line for employers: the cost of doing business will increase.