Time is already beginning to run out on Obama’s regulatory agenda, since complex rules routinely take a year or more to develop and put into place.

“Nobody saw this coming,” McCutchen said. “This proposal has never been disclosed.”

The Labor Department’s official rule-making agenda contains no mention of the initiative.

Business groups said changing overtime pay could damage the nation’s fragile economic recovery.

“Changing the rules for overtime eligibility will, just like increasing the minimum wage, make employees more expensive and will force employers to look for ways to cover these increased costs,” said Marc Freedman, executive director of labor law policy at the U.S. Chamber of Commerce.