Expanding overtime pay a win for workers, employers, economy

Lonnie Golden (right), professor of economics at Penn State Abington, thinks the new regulations expanding eligibility for overtime pay will benefit employers as well as employees and the economy as a whole. An estimated 5 million more Americans will become eligible for overtime pay in 2016 under new regulations announced by President Barack Obama this week. The action more than doubles the salary cap under which most workers would qualify for overtime,to $50,440. Lonnie Golden, economics professor at Penn State Abington, called the new regulations "necessary and welcome in the current economic, political, and legislative environment." He recently published research on the economic and social impact of such a move. Golden said it's understandable that employers utilize the existing executive, administrative, and professional exemption from overtime to minimize labor costs, but its use has gone beyond the original intent. "It shifts the burden to employees who often work longer than a standard week for no additional pay in exchange for a 'promotion' in terms of title, status, and responsibility," he said. "But it often adds greater work-life conflict and stress particularly when they end up performing tasks of the hourly, non-exempt workforce." - "There is little risk that expanding overtime would stifle real investment in technology, capital, or research and development." Lonnie Golden, labor economist - Golden said the executive action will prove to be a win for workers, employers, and the overall economy.