Center for Community Change Applauds Directive to Revamp Overtime Rules

by Community Change | March 13, 2014 3:08 pm

For Immediate Release: Thursday, March 13, 2014
Contact: Donna De La Cruz, [email protected] (202) 339-9331

Change Would Help Reduce Income Inequality and Fix Wage Stagnation for Millions

(WASHINGTON)—Community Change today applauded President Obama for directing the Labor Department to update antiquated overtime rules. This action will raise pay for millions of workers, reduce income inequality and alleviate wage stagnation.

“Since 2004, the Labor Department has allowed businesses to use rules that give them wide leeway on how they classify employees so they can avoid paying overtime,” said Deepak Bhargava, Executive Director of the Center for Community Change. “We applaud the President’s decision to direct the Labor Department to raise the salary threshold it uses in regard to overtime pay. The current standard used– $455 a week—is absurdly low and has kept millions of families in the working poor status.”

“Businesses have used the lax overtime rules to make soaring profits while wages remained stagnant,” Bhargava added. “These changes would go a long way in helping reduce the income inequality that greatly affects millions of workers in our country.”

Community Change has embarked on an economic justice campaign to end poverty by building a movement that will fight to ensure that everyone has access to a decent job with fair wages and benefits, public supports to supplement wages when needed, affordable access to health care and a secure retirement necessary to succeed.

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