“Greece On Steroids”: Fox's Cavuto Attacks New Overtime Rules That Will Help Millions Of Workers
Fox News host and senior vice president Neil Cavuto responded to President Obama's expansion of federally guaranteed overtime pay to 5 million additional American workers by fear-mongering that the regulatory change would lead the United States down a path toward financial ruin similar to Greece while hurting the workers it is meant to protect.
In a June 29 op-ed in The Huffington Post, President Obama announced his plan to update federal overtime regulations in 2016 by increasing the salary threshold at which qualifying employees are legally guaranteed overtime pay. Under current law, salaried employees earning less than $23,660 annually are legally required to be paid time-and-a-half when their position requires that they work in excess of 40 hours per week. Obama's proposal would more than double the income threshold to qualify for overtime -- covering qualifying employees earning up to $50,400 annually, or roughly 40 percent of the salaried workforce. Current overtime standards only extend to about 8 percent of salaried workers.
In response to the president's proposal, Cavuto expressed concern that paying more Americans for the hours they work could contribute to an economic disaster in the United States. On the June 30 edition of Fox's Your World, Cavuto proclaimed that the U.S. was becoming “Greece on steroids,” a reference to the disastrous fiscal and financial circumstances that have unraveled the comparatively tiny European economy for more than six years. Cavuto was joined by discredited economist Art Laffer, who lamented the “huge burden on these companies” that will now be required to adequately pay their employees:
Despite Cavuto's dire predictions, economists expect that expanded overtime protections will be a boon for the American workforce.
According to the Economic Policy Institute, the majority of the workers who will directly benefit from the overtime change are women, and nearly 30 percent of affected workers are minorities. In an op-ed co-authored with philanthropist Nick Hanauer, economist Robert Reich blasted overtime opponents for warning of “unintended consequences” from stronger wages “without an ounce of empirical data to back it up.” They also likened the policy to a “minimum wage hike for the middle class,” and explained that it will either boost workers' pay or give them additional leisure time while adding new jobs. Economist Jared Bernstein of the Center on Budget and Policy Priorities argued in a blog published by The Washington Post that expanding overtime protections is “a critical labor standard with the potential to boost the paychecks of millions of middle-wage workers.”
Fox has a long history of attacking overtime protections, recently complaining that the then-rumored proposal amounted to “left-wing economic engineering” and was “probably going to hurt a lot of other people.”