Obama rejiggering overtime eligibility regs: Not imperial, just stupid

Obama rejiggering overtime eligibility regs: Not imperial, just stupid

[Ed. – Comatose economy to get closer to that flatline mark.]

“Blindsided … stunned …” These are the reactions from business groups and Republicans to yesterday’s announcement of a redefinition of overtime exemption from Barack Obama, according to The Hill. Both have been fighting the White House proposal to raise the minimum wage to $10.10 an hour, which lost support among Democrats after the CBO estimated it would cost 500,000 jobs by 2016. This time, Obama can go it alone … sort of…

It’s not really executive overreach…Unlike the minimum wage, which is set by statute and has to be amended by Congress, the definition of overtime exemption is handled by Department of Labor regulation. …

And … what is the proposal, anyway? No one knows, and the White House isn’t saying. Right now, the exemption allows businesses to claim overtime exemption for people earning $455 a week or more (annual salary of $23,660)* just by asserting that any part of their duties is “executive” in nature. That’s a ridiculously low level, but businesses have structured their work forces on the basis of this regulation. No matter what level the White House chooses, it’s going to impact staffing decisions; the question is how bad it will get, and how many jobs end up going from full- to part-time in defense of potential unforecasted costs in smaller businesses especially.

The real problem…is the dysfunctional job-creation that exists under Obamanomics — high regulation, hikes in capital-gains tax rates, and ObamaCare. …

The problem Obama claims to be solving is largely that of his own making – and this top-down change will have significant consequences as well. The White House argues that it will either force employers to pay overtime or to hire more workers to perform the work. …

[But it’s] recutting a shrinking pie rather than figuring out how to make it larger, and it’s bound to fail in every way except perhaps politically — and even that win will be minor and short-lived.

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