Obama To Reveal Details Of Overtime Pay Reform: Americans Are Being ‘Cheated’ (VIDEO)

Last year, President Barack Obama advised the Labor Department to change the rules surrounding pay premium for Americans that work over 40 hours per week because the rules we’ve had in place since the Bush administration allow companies to take advantage of their employees.

In an exclusive interview with Huffington Post, Obama discusses the release of what could be a massive reform to the way overtime pay is handled throughout the United States – news that could change the lives and futures of countless Americans. You can watch the short interview below:

Making sure to stress that workers are not being compensated fairly for their time and effort, Obama said:

“What we’ve seen is, increasingly, companies skirting basic overtime laws, calling somebody a manager when they’re stocking groceries and getting paid $30,000 a year. Those folks are being cheated.”

At the heart of the reform is the salary threshold, which is currently just over $23,000. As of right now, only employees earning less than that designated figure are entitled to overtime pay if they work over 40 hours per week – regardless of their employer or job. In 2013, only 11 percent of Americans were eligible – yet many Americans already do work overtime without proper compensation.

The Obama administration would like to increase this salary threshold so more Americans are eligible to receive time-and-a-half pay. The raised threshold would force employers to be more ethical by making them pay their employees fairly or keeping their hours to 40 per week.

The President was quiet about what the new salary requirement would be, but there have already been suggestions about what he should propose. In the beginning of this year, Senate Democrats suggested that the salary be raised to almost $57,000 – allowing 50 percent of salaried workers access to fair compensation for overtime work. A few House Democrats suggested $69,000.

Obama said his main goal for the reform is “to set a standard that is fair and that acknowledges the history of people getting paid their fair overtime wages.” The President advised that the revised overtime rule would be released “relatively soon.”

Featured image courtesy of Cfishy/Flickr.