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Department of Labor Changes Interpretation of Act to Raise Minimum Wages

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The U.S. Department of Labor, acting on a directive of President Obama issued back in March 2014, has announced changes in the Fair Labor Standards Act (FLSA). Beginning this fall, the act will basically double the amount of money workers must make to be exempt from federal overtime pay requirements. Essentially, employees with gross salaries under $45,000 who work more than 40 hours a week must be paid overtime.

Obama could not increase the minimum wage rate through Congress, so he instructed the Labor Department to do it through the backdoor. This will definitely kill jobs and cut hours to ensure employees do not exceed 40 hours. A $15 an hour job for 40 hours comes in at $31,200 annually. By raising the threshold, Obama has more likely than not created an incentive not to hire full-time workers. This is what we get when someone has no idea of how the real world works.