Obama announces new overtime rules in op-ed; 5 million people are expected to benefit
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President Obama announced new rules on Monday that will allow salaried workers making up to $50,440 to be eligible for time-and-a-half overtime pay.
Obama announced the new rules, set to take effect in 2016 after a comment period, in a Huffington Post op-ed. The change raises the salary floor from the current $23,660, which was imposed in 2004. Under the 2004 rules, those who make more than that amount are generally denied overtime if they have managerial authority, professional expertise, or make important decisions independently. The Boston Globe, New York Times, the Wall Street Journal (sub. req.) and the Washington Post have stories.
“Right now, too many Americans are working long days for less pay than they deserve,” Obama wrote.
Sources told AP that, going forward, the proposal will peg the salary threshold at the 40th percentile of income.
The Labor Department estimates 5 million people would be affected by the change.
The administration has the power to issue the regulation without congressional approval. The plan had been opposed by business groups.
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