The Labor Department has issued issued a new rule regarding overtime that will double the salary threshold up to which employees would be eligible for overtime pay. According to The New York Times:
WASHINGTON — The Obama administration, in a far-reaching effort to improve the lot of workers that has ignited criticism from business groups, announced on Tuesday that it was making millions more employees eligible for overtime pay.
Under the new regulation, most salaried workers earning up to $47,476 a year must receive time-and-a-half overtime pay when they work more than 40 hours during a week. The previous cutoff for overtime pay, set in 2004, was $23,660.
“This is a big deal to be able to help that many working people without Congress having to pass a new law,” said Ross Eisenbrey of the Economic Policy Institute, an early voice in urging the administration to take up the issue. “It’s really restoring rights that people had for decades and lost.”
The change is expected to play out in a variety of ways. Once the rule goes into effect on Dec. 1, many workers will receive more pay when they work overtime, but others may end up working fewer hours if employers move to limit their time at work. In other cases, employers may decide to increase the salaries of some workers to push them over the cutoff so that the employers will not have to pay overtime or hire additional workers after limiting hours for existing employees.