Obama rule makes 4 million workers eligible for overtime pay

Posted by | May 18, 2016 18:00 | Filed under: Economy Good News

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Rules issued Wednesday will put more money in the pockets of 4 million workers.

The rule seeks to bolster overtime protections that have been eroded in recent decades by inflation. A diminishing proportion of workers have benefited from overtime regulations, which date to the 1930s and require employers to pay 1½ times a worker’s wage for work that exceeds 40 hours a week.

Vice President Joe Biden announced the changes at Jeni’s Splendid Ice Creams in Columbus, Ohio.

In the fast food and retail industries in particular, many employees are deemed managers, work long hours but are paid a flat salary that barely exceeds the income of the hourly workers they supervise who receive overtime pay.

Under the new rules, released in draft form last summer, the annual salary threshold at which companies can deny overtime pay will be doubled from $23,660 to nearly $47,500. That would make 4.2 million more salaried workers eligible for overtime pay. Hourly workers would continue to be mostly guaranteed overtime.

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Copyright 2016 Liberaland
By: Alan

Alan Colmes is the publisher of Liberaland.

6 responses to Obama rule makes 4 million workers eligible for overtime pay

  1. amersham46 May 18th, 2016 at 18:40

    Now you will see twice the number of “supervisors” all working part time

    • whatthe46 May 18th, 2016 at 19:18

      No. You will see them working 40 hours and not much over that. Getting 24k a year while working. 60 hrs. or more a week is b.s.

      • TiredOldGuy May 18th, 2016 at 19:30

        My boss has already been told that she must get OT approved in advance (not gonna happen). She routinely works 50 – 60 hrs per week.

        • whatthe46 May 18th, 2016 at 19:34

          then she has a case. if her salary is at 23k and she continues to work 50 – 60 then she’s nuts.

          • TiredOldGuy May 18th, 2016 at 19:47

            I agree, but at 50 years of age and making $42K she’s afraid that she’ll end up looking for another job. Non profits are often quite good about compensating the “top” people but not so much the front line managers.

            • whatthe46 May 18th, 2016 at 20:04

              well, if it’s law then they will just have to deal with it. and those that make double her salary don’t work nearly 40 hrs.

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