The Obama Administration is giving millions of Americans the opportunity to qualify for overtime pay for the first time.
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Vice President Joe Biden announced the new policy Wednesday during a speech at an ice cream factory.
In the fast food and retail industries in particular, many employees are deemed “managers”, work long hours, but are barely paid more than the people they supervise.
The White House estimates the rule change will raise wages by nearly $1.2 billion a year or $12 billion over the next decade.
The rule takes effect December 1. At present the threshold is just $23,660 and the government will double the number to $47,476 that will guarantee overtime rights for salaried workers earning less than that amount.
Black said many state workers would fall into this category. “With this new regulation, fewer working parents will be able to have flexible schedules or work from home if their employers are forced to track every hour they work”.
Miller says some businesses may try to get out of paying overtime by raising employee salaries above the threshold, but he says that’s a win for employees too.
Several groups, including the nation’s two largest human resources organizations, strongly opposed the new overtime rule even thought the threshold eligibility was reduced from the original plan’s $50,000.
U.S. Sen. Patty Murray (D-Wash.) released the following statement in response to the overtime rule. Republicans in Congress have said they will move to block the rule, but they would need to overcome a veto from President Barack Obama. Under current law, that means they don’t have to be paid overtime pay when they work more than 40 hours.
JUDY WOODRUFF: Some university officials have also warned they may have to raise tuition or scale back services to abide by the new guidelines. Which means millions more salaried employees will now be eligible for overtime pay. So there will, you know, employers are going to have to look at their work force, and decide who is going to be reclassified. “They’ll effectively be demoted from a salaried position, where they’re exempt, to an hourly position, where they’re not exempt”.
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Rugaber reported fom Washington, D.C.
