Image from onlineethiopia.net
Image from onlineethiopia.net

Five million Americans will benefit on President Obama’s reform to extend overtime to employees earning less than $50,400 annually. In the Presidents recommendation, he proposed that overtime rules be updated so more workers will receive a time and a half pay should they work for more than 40 hours a week.

The current overtime rule executed by President George Bush states that only those earning less than $23,660 annually are entitled for an automatic overtime pay. However, this is not what President Obama wants. He said; “many of our people work for long hours and paid less for their efforts. With the overtime reform, hard work rendered will be adequately rewarded”.

Furthermore, the President added, “In our country a hard day’s effort has to be reciprocated with a fair pay”.

According to the country’s current wage laws, white collared jobs are not included for overtime payment even during time of great depression. Hence, some retail companies hire managers and let them work for 80 hours a week without paying them for their extra hours of work. And the President can just say a few words concerning this matter; “They are being cheated!”

As a result, employers asked to limit the rule’s effect considering the fact that they will need to deal with the new labor cost. This new overtime ruling is expected to be implemented on 2016. Once it takes effect, employers will be forced to adjust by either paying their workers the premium that they deserve or allowing them to only work for less than 40 hours a week.