New Obama rule extends forced overtime pay to millions of workers

New Obama rule extends forced overtime pay to millions of workers

Starting later this year, millions more workers will become eligible for overtime pay.

Under a new rule announced by the White House Tuesday, anybody making a salary of less than $47,476 ($913 a week) will automatically qualify for overtime pay when they work more than 40 hours a week.

That’s roughly double the $23,660 threshold (or $455 a week) that’s currently in place.

The change — which has been criticized as too drastic by many employers — will go into effect on Dec. 1, 2016. They are intended to expand access to overtime pay for otherwise low-salaried workers who log long hours but have been treated as exempt from overtime because they perform some managerial duties.

Vice President Joe Biden characterized the changes as “restoring and expanding access to the middle class.”

The percent of salaried workers automatically eligible for overtime has fallen to 7% from 62% in 1975. Under the new threshold, 35% of salaried workers will become automatically eligible, according to Labor Secretary Thomas Perez.

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