The Department of Labor released a proposed rule yesterday that could require businesses to pay overtime to workers who earn a regular salary of less than $921 per week, or $47,892 annually. Workers who make more than $455 or $23,660 annually are currently exempt from some of current law’s minimum wage and overtime protections. The Department is currently accepting public comment on the proposed regulation. If finalized, the new rule could extend overtime wage benefits to as many as 5 million workers.
As described by the Department,
Failure to update the overtime regulations has left an exception to overtime eligibility originally meant for highly-compensated executive, administrative, and professional employees now applying to workers earning as little as $23,660 a year. For example, a convenience store manager, fast food assistant manager, or some office workers may be expected to work 50 or 60 hours a week or more, making less than the poverty level for a family of four, and not receive a dime of overtime pay. Today’s proposed regulation is a critical first step toward ensuring that hard-working Americans are compensated fairly and have a chance to get ahead.
For more information, see the following links from the Department of Labor.
- Notice of Proposed Rulemaking (PDF)
- Overtime Resources
- Fact Sheet: Middle Class Economics Rewarding Hard Work by Restoring Overtime Pay
- A Hard Day’s Work Deserves a Fair Day’s Pay (Huffington Post)
- Frequently Asked Questions (PDF)
- Fact Sheet on Proposed Rule (PDF)
Press coverage has shared concerns about the new rule from the the business community: from The Hill, Obama swings left with overtime regs and from CNN Money, Businesses rail against Obama’s overtime rule change.