“We’re strengthening our overtime pay rules to make sure millions of Americans’ hard work is rewarded”, Obama wrote in a White House email.
Advertisement
The federal Department of Labor said the change could apply to 46,000 people in CT who are paid salaries instead of hourly wages but whose salaries are now above the threshold at which their employers have to pay them overtime. Employers have some options: They can pay workers time-and-a-half for any time over 40 hours a week, limit an employee’s hours to 40 a week, raise an employee’s salary to above the threshold, or a combination of the above.
Under the new rules, released in draft form last summer, the annual salary threshold at which companies can deny overtime pay will be doubled from $23,660 to almost $47,500.
“Certainly for any employee who’s working more than 40 hours, under $47,000 salary, that employee’s going to cost more per hour for any overtime”, he said.
More than four million salaried workers could be eligible for overtime pay later this year.
The new rule is expected to extend overtime coverage to over 4 million workers in its first year.
ASTA’s CEO said the society is “disappointed” in the U.S. Department of Labor’s (DOL) final rule updating overtime regulations, which was announced Wednesday.
“I think you’re going to see small businesses reconsider the number of employees they have and how their businesses are structured”, Galnor said. “So for example you might have somebody who has a pay of $25,000 as an assistant manager and now they may be working 60 or 65 hours a week and not getting compensated for the overtime, the hours above 40”. Having been a single dad and at times relying on overtime pay, it’s easy for him to support overtime pay. David French of the National Retail Federation calls it a career killer.
Warehouse employee Rejinaldo Rosales, 34, at work in Tracy, Calif.
The higher threshold will lift that ratio back to 35 percent, Perez said.
Congressman Darin Lahood says the overtime rule doesn’t sit well with local business owners.
Even if employers cut hours for some workers to avoid overtime pay, they could be forced to step up hiring to ensure that necessary work is done. It takes effect December 1.
Advertisement
Gov. Andrew Cuomo praised the change, saying it will require “a fair day’s pay for a fair day’s work” and promote economic justice.
