The Department of Labor has finalized new overtime regulations this week that will put more money into the pocket of middle class families across our nation. This is a huge win for working families and will give a much-needed boost to the wages of millions of workers.
The new rule more than doubles the salary threshold, ensuring workers who make less than $47,500 are eligible for overtime. The Obama Administration heeded the call for action to ensure working people get paid for all the hours we work. Taking this step to restore overtime is one of the many ways we are beginning to change the rules of our economy that are rigged in favor of Wall Street.
Millions of workers will now receive a long overdue raise, healthier and more productive jobs, and be able to spend more time with our community and loved ones.
Over the past 40 years, overtime protections eroded as a result of inflation and lobbyists’ efforts to weaken them. The share of full-time workers qualifying for overtime based on their salaries plummeted from 62 percent in 1975 to 7 percent today—even though the protections are more important than ever.
Here are five quick things you should know about this rule that will help raise the wage for millions of hard-working Americans.
- Raise the salary threshold from $23,660 to $47,476 a year, or from $455 to $913 a week.
- Raise Americans’ wages by an estimated $12 billion over the next 10 years, with an average increase of $1.2 billion annually.
- Extend overtime protections to 4.2 million additional workers who are not currently eligible for overtime under federal law.
- Update the salary threshold every three years.
- More than half − 56 percent − are women, which translates into 2.4 million women either gaining overtime protections or getting a raise to the new threshold as a result of the rule.