Today's News & Commentary — April 29, 2016
Politico reports that a forthcoming rule from the Labor Department will set the new salary threshold for extending overtime coverage at $47,000. Below this threshold, most salaried employees will qualify for time-and-a-half pay if they work more than 40 hours/week. The final rule is expected to be released in mid-May.
JDSupra reports that President Obama has announced an amendment to the current EEO-1 (Employer Information Report) rules to require employers to submit information regarding their employees’ compensation within the existing job categories. The proposed regulation was jointly published by the EEOC and the Department of Labor and, if effectuated, will cover over 63 million workers in the U.S. According to JDSupra, “[t]hese new disclosure requirements will undoubtedly inceitivze employers to address pay discrepancies or risk claims by the federal government if left unaddressed.”
Per the Wall Street Journal, unemployment claims rose slightly to a seasonally-adjusted 257,000 last week but still remain at a historically low level “consistent with a healthy and improving labor market.” The New York Times also acknowledged the healthy appearance of the job market, but wonders why an apparently robust labor market is being accompanied by such weak growth in the GDP. Ultimately, it seems like many businesses are choosing to hire more workers rather than invest in new technology or equipment as a means of increasing output. Although we might be glad about this in the short-term, some economists worry that it could ultimately undermine the nation’s prosperity.