A new rule put in place by the Department of Labor will bring overtime pay eligibility to 4.2 million more Americans.
The new rule was commissioned by President Barack Obama and it includes increasing the salary threshold for overtime pay eligibility from $23,660 a year to $47,476 a year. It’s expected that this will raise wages in the U.S. by $12 billion over the next 10 years.
The overtime pay eligibility rule will be updated every three years to guarantee that it covers 40% of full-time salaried workers in the poorest region of the country. The next update to the rule is expected to increase the threshold above $51,000. Read