Obama Using His Pen To Change Work Rules For White Collar Workers


President Obama is using his pen again to bypass those pesky members of Congress. This time he is ordering the Labor Department to change overtime rules for millions of white collar workers including fast-food managers, computer technicians and loan officers that many employers currently classify as exempt. It’s all being done in the name of ending income inequality, which has gotten worse since Obama took office.

Sounds great, right? Well, there’s always a downside.

Conservatives criticized Mr. Obama’s impending action. “There’s no such thing as a free lunch,” said Daniel Mitchell, a senior fellow with the Cato Institute, who warned that employers might cut pay or use fewer workers. “If they push through something to make a certain class of workers more expensive, something will happen to adjust.”

Marc Freedman, the executive director of labor law policy for the U.S. Chamber of Commerce, said the nation’s overtime regulations “affect a very wide cross section of employers and our members.”

“I expect this is an area we will be very much engaged in,” Mr. Freedman said.

Cecilia Muñoz, the director of the White House Domestic Policy Council, said the effort was part of Mr. Obama’s pledge to help workers thrive. “We need to fix the system so folks working hard are getting compensated fairly,” she said on Tuesday evening. “That’s why we are jump-starting this effort.”

I can see it now, employers will just pay these people at a lower hourly rate. Or they will cut other benefits.

H/T The Lid

Update: Linked by Expose the Media – thanks!