When President Obama started talking about getting around Congress with his phone and his pen, we all knew it was not going to end well. Increasing the minimum wage for government contractors hasn’t really had a chance to show any ill effects, so it makes sense that the president is already leaping into fair labor regulations, to start causing havoc in private industry.
The current cause is to force employers to pay overtime to salaried workers. There are already exemptions based on income that would possibly come into play, but they haven’t been adjusted for inflation on the Federal level since 2004. That said, there might be a valid argument to revisit those caps, but to force employers to pay overtime to salaried workers in general is not something any competent leader should consider in a soft job market.
Government increasing liabilities on businesses on a per employee basis is never a good idea when the economy needs private industry to be creating jobs. That is something that keeps getting lost in the shuffle for many reasons, but the two most obvious are the fact that the administration has changed the equations for determining the unemployment rate, and has reduced expectations for reasonable growth. What does that mean? It means that we don’t count people that have dropped out of the unemployment system into the welfare system, and the “new normal” is not really growth — it’s barely treading water.