Obama to order change in overtime rules

In a move that will affect millions of workers and countless employers, President Obama has announced plans to change the rules governing overtime payments to employees. The plan will apply to managerial and executive workers who are currently exempt from receiving overtime because they make more than $455 a week. The president plans to issue an executive order directing the Labor Department to increase that threshold, though the final numbers are undetermined. The department is likely to take months to finalize its recommendation.

A White House official noted that the overtime rules establishing the 40-hour workweek have been eroded “due to years of neglect,” leaving millions of workers without adequate protection.

Republicans complained that Obama was bypassing Congress and that the plan would harm businesses. The plan also faces opposition from many business groups.

“We understand the administration is looking for ways to put more money in people’s pockets, but the only way to do this is to grow the economy and create more jobs,” Marc Freedman, executive director of labor law policy for the U.S. Chamber of Commerce, told USA Today. "Adding more burdens to employers will not accomplish that goal.”