Income Inequality: Obama Seeks to Extend Overtime Pay to White-Collar Workers

Personal Finance
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President Barack Obama looks at a sweater with Gap employee Susan Panariello while shopping for his family in New York

Managers at McDonald’s, 7-11 and Wal-Mart: The president wants to get you paid.

Business owners will need to pay more overtime to millions of workers in a move by the Obama administration aimed at decreasing income disparity in the United States, The New York Times reports.

On Thursday, Obama will order the Labor Department to revamp its regulations to require overtime pay for several million additional fast-food managers, loan officers, computer technicians and others classified as “executive or professional” employees to avoid paying them overtime.

“Some employers classify workers as ‘white collar’ workers even though the overwhelming majority of their duties are not white collar,” a White House official told Reuters on condition of anonymity, using the example of a convenience store manager or shift supervisor at a fast food restaurant.

The threshold for executive pay was set in 2004 to $455 per week.

“It’s even possible that some of these workers make less than the minimum wage per hour,” the official told Reuters.

A salaried worker earning $455 per week who works 63 hours or more earns less than the minimum wage.

Official White House Photo by Chuck Kennedy