Not for contractors, of course, but for a lot of people:
The Obama administration will unveil a new rule Wednesday that would make millions of middle-income workers eligible for overtime pay, a move that delivers a long-sought victory for labor groups.
The regulations, which were last updated more than a decade ago, would let full-time salaried employees earn overtime if they make up to $47,476 a year, more than double the current threshold of $23,660 a year. The Labor Department estimates that the rule would boost the pockets of 4.2 million additional workers.
The move caps a long-running effort by the Obama administration to aid low- and middle-income workers whose paychecks have not budged much in the last few decades, even as the top earners in America have seen their compensation soar. The last update to the rules came in 2004, and Wednesday’s announcement is the third update to the salary threshold for overtime regulations in 40 years.
“Along with health care reform this is one of the most important measures that the Obama administration has implemented to help middle-wage workers,” said Jared Bernstein, a former chief economist to Vice President Biden and a senior fellow at the Center on Budget and Policy Priorities.
About 35 percent of full-time salaried employees will be eligible for time and a half when they work extra hours under the new rule, up significantly from the 7 percent who qualify under the current threshold, according to the Labor Department.
2 thoughts on “New rule will raise income”
Wow. That executive order could have come seven years ago. Come to think of it, it could have come twenty-three years ago.
Courtesy of the federal courts’ sudden lack of interest in standing doctrine, we will get another House backed lawsuit alleging usurpation venued in a conservative circuit, resulting in an injunction intended to be upheld 4-4 in the Supreme Court. Don’t count your chickens while the clucks control the House.
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