In the latest installment on fulfilling his pledge to “close the income gap,” President Obama Thursday will act to increase workers’ pay by rewriting labor regulations so that millions more will qualify for overtime pay.
The move, which was announced via the New York Times, could cost businesses billions of dollars.
Obama’s authority to act “comes from his ability as president to revise the rules that carry out the Fair Labor Standards Act, which Congress originally passed in 1938,” the Times writes.
The White House argues that the move is justified because corporate profits have been piling up while worker salaries have stagnated. But the added labor costs could provide businesses with yet another incentive, along with the Obamacare insurance requirements and a potential hike in the minimum wage, to cut workers at a time of high unemployment.
Unless, of course, Obama issues an executive order preventing companies from firing people.