Republican Presidential candidate Jeb Bush said last week that he wanted Americans to work harder, which he later claimed really meant full time work instead of part time work.
This week Bush voiced his opposition (video below) to a rule change by President Obama last month that will make about five million more Americans eligible for overtime pay.
President Obama changed the rule so that salaried Americans who earn up to $50,440 a year can qualify for overtime pay.
Before the change, salaried workers could only make up to $23,660 in order to earn overtime, noted The New York Times.
American Bridge 21st Century, a Democratic Super PAC, posted a video of Bush speaking at town hall event in Council Bluffs, Iowa, slamming the new overtime pay rule:
So if you want to give a bonus to a manager in your store or your company, instead of requiring higher pay, this law won't allow it.
In reality, there is nothing in the rule change that prevents companies from giving managers bonuses.
It's this prescribed top down driven approach that is the wrong approach. The net effect of the overtime rule will be, if history’s any guide, there will be less overtime pay, there will be less wages earned, this will be another example of how people have to figure out a new way to innovate to lessen the number of people working rather than increasing.
Companies have always looked for ways to lessen their overhead, including cutting employees. The New York Times reported in 2010 how companies were cutting workers in order to drive up profits.
The last time the overtime salary threshold was raised (to $23,660) was back in 1975 by President Ford.
Ross Eisenbrey, Vice President of Economic Policy Institute, told Business Insider that 61% of salaried workers were covered in 1975, compared to only 8% today (before President Obama made the rule change).
Eisenbrey added that some companies have been able to avoid paying overtime by paying salaried employees just a little more than the $23,660 threshold from 1975.
Also, according to the U.S. Department of Labor, millions of Americans are cheated out of their overtime pay by employers with other tricks.