New Federal Rule Makes Millions More Americans Eligible For Overtime Pay

On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. The new rule will make millions more middle-income Americans eligible for overtime pay.

Although a little understood rule, salaried employees can be eligible for overtime. Until now, the rule had been salaried employees earning less than $23,660 a year were eligible for overtime pay. The new rule, which had not been updated for ten years, makes salaried employees eligible for overtime pay if they earn less than $47,476 a year. This doubles the current threshold, and extends overtime pay to an estimated 4.2 million additional American workers, per the Department of Labor. For more information on this topic or any employment question, please contact Christopher Taylor of Taylor Labor Law, P.C. at (626) 219-6008 or chris@taylorlaborlaw.com. You may also wish to visit www.taylorlaborlaw.com.