Municipal Government

Obama Administration Expands Overtime Eligibility

May 22, 2016 

President Obama

By Steven Wishnia and Neal Tepel

Washington, DC – The Department of Labor announced May 18 that it has more than doubled the income limit under which employers must pay salaried workers overtime.

The new rule, which will go into effect Dec. 1, says workers who make up to $47,476 a year must be paid time-and-a-half if they work more than 40 hours a week. The old standard, set in 2004, was $23,660. The department estimates that the change will enable 4.2 million more workers to get paid for overtime—about 35% of full-time salaried employees, up from the 7% eligible under the old rule. The lower threshold has meant that some salaried workers, such as fast-food restaurant managers, make less than minimum wage if they work overtime. The new rule will also raise the income threshold every three years to adjust for inflation. Read more

May 21, 2016

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