President Obama has proposed changes to the Fair Labor Standards Act that are expected to impact five million U.S. workers as of 2016. These changes, the first to be made since an update in the 1970s under the Bush Administration, aim to increase the salary threshold and the number of employees who qualify for overtime pay.

In a June 30 press conference, Secretary Thomas Perez of the U.S. Department of Labor said that the updates aim to "reward hard work with a fair wage and ensure people who work extra get paid extra."

For some employees, not receiving overtime pay means not receiving minimum wage when all hours of overtime are considered, according to a fact sheet released by the White House. Under the proposed changes, overtime pay would be extended to approximately five million workers within the first year.

Currently, overtime is granted only to salaried workers earning less than the salary threshold of $23,660 per year, or $455 per week. This is below the poverty threshold for a family of four and only 8 percent of full-time salaried workers fall below it. The proposed changes would raise the salary threshold to $50,440 per year, or $970 per week.

"This proposed overtime rule goes to the heart of what it means to be middle class in America," Perez said.

In addition to raising the threshold and expanding the number of employees who can receive overtime pay, the proposed changes are supposed to make it easier for employers and employees to determine who should be receiving overtime pay. The changes are also expected to simplify the process of updating the salary threshold in the future based on inflation of wage growth over time.

However, the proposal does not include specific changes to the test that determines if salaried workers earning more than the threshold qualify for exemption from overtime rules and, in general, hourly workers will continue to receive overtime pay as they currently do.

After submitted comments are reviewed and considered, the Department of Labor will decide on a final rule next year.

Opinions vary on whether or not this update will largely impact businesses and workers in the Lehigh Valley.

Senator Bob Casey voiced his support of the changes and urged President Obama to issue the order.

"This executive order will have a substantial impact on wages for families across Pennsylvania and the nation," Casey said in a press release. "Raising wages for our nation's workers, whose productivity is increasing, is one of the keys to giving all Americans a fair shot in today's economy."

Although the Lehigh Valley Economic Development Corporation has not taken an official position on the issue, President and CEO Don Cunningham said, "I would imagine, but I'm not certain, that most employers would look favorably upon it from a cost perspective."

Despite these favorable opinions on the proposed changes, Michelle Young, Chamber of Commerce executive vice president of government and external affairs, finds the decision to be "haphazard."

"A business can't just find money in the sky when they need to abide by new regulations," she said. "You need to do things in a methodical way that businesses can keep up with and plan for. ... A business is trying to make ends meet everyday, and it's just one thing after another and they can't keep trying to find the money to do these things."

Speaking as a union representative, Northampton County Councilman Ken Kraft said, "I think it wouldn't be a big impact in the Lehigh Valley because I think most of our companies pay a living wage to their employees." Regardless, he stands in support of the order.

"I think an increase in pay for people to a living wage is a great thing," added Kraft, a Democrat. "It's a great step because we have a lot of people who are out there who are working and not making a living wage and this is a step in the right direction."