New overtime rules will boost millions of U.S. workers
Posted May 18, 2016 in Press Releases
Labor Department raises salary threshold below which workers must be paid for extra hours worked.
For immediate release
Contact: Amy Hanauer, 216.375.9274
New federal rules on overtime pay to be announced today will boost wages for low- and middle-income American workers who are now required to work overtime without pay. This will help millions of Americans who struggle to get by in our hard-driving economy.
The new rules are expected to be unveiled today by Vice President Joe Biden at an event at Jeni’s Splendid Ice Creams in Columbus. The U.S. Department of Labor announced that the updates will double the wage threshold under which overtime pay is required when an employee works over 40 hours a week. The annual compensation threshold will increase from $23,660 to $47,476.
It will benefit 12.5 million workers by extending overtime eligibility to 4.9 million workers and making it easier for another 7.6 million workers who already qualify for overtime to prove their eligibility. (See who they are and where they live here). The rules take effect December 1.“It makes perfect sense to update these rules,” said Amy Hanauer, executive director of Policy Matters Ohio. “This will mean that workers are paid for the hours they work and will help overworked American families restore some balance to their lives