Washington, D.C. — The restored overtime threshold means that more American workers will finally get the wages they have earned and deserve, says Center for American Progress Executive Vice President for Policy Carmel Martin.
According to the U.S. Department of Labor, or DOL, employees classified as professionals and managers were previously exempt from earning overtime if they made more than $23,660 per year and performed specific duties. Last year, President Barack Obama directed the DOL to update the regulations regarding who qualifies for overtime protection; the new overtime threshold, as finalized today by the DOL, is now $47,476. Many more salaried workers making less than $47,476 per year will now earn time and a half for working more than 40 hours in a week, and the updated rule will help ensure that workers receive wages commensurate with their responsibilities and the length of their workday.
Martin’s full statement is below:
Even as the economy has turned around, millions of middle-class workers have felt the pinch of rising costs and stagnant wages. Restoring the overtime threshold–which has been badly eroded by time and inflation–will bring back overtime protections to millions of salaried employees.
Restoring overtime is good for all corners of our economy. Low- and moderate-income workers will have more money in their pockets to spend, spurring demand and helping the economy grow. Raising the overtime threshold has an outsized impact on women, black, and Latino workers, all of whom are more likely to benefit from the new rule. Workers with lower levels of education and younger workers struggling to boost their earnings and build wealth are also more likely to see a small boost in their paychecks.
With no action from Congress on the horizon to help improve the fortunes of working-class Americans, the Obama administration is ensuring that more American workers will finally take home the wages they have earned and deserve.
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For more information on this topic or to speak with an expert, contact Allison Preiss at [email protected] or 202.478.6331.