United States Department of Labor <\/a>issued a new rule on Wednesday that updates the regulations determining which white-collar, salaried employees are entitled to the Fair Labor Standards Act\u2019s minimum wage and overtime pay protections.<\/p>\n<\/p>\nThe rule increases the salary threshold below which most white-collar, salaried workers are entitled to overtime from the current $455 per week (or $23,660 for a full-year worker) to $913 per week (or $47,476 for a full-year worker), according to a Department of Labor media release.<\/p>\n<\/p>\n
In 2014, President Obama directed the Secretary of Labor to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act, and to simplify and modernize the rules so they\u2019re easier for workers and businesses to understand and apply. The department has issued a final rule that will put more money in the pockets of middle class workers \u2013 or give them more free time.<\/p>\n<\/p>\n
The final rule will:<\/p>\n<\/p>\n
\u2022 Raise the salary threshold indicating eligibility from $455\/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers, including 76,000 in Washington state.<\/p>\n<\/p>\n
\u2022 Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.<\/p>\n<\/p>\n
\u2022 Strengthen overtime protections for salaried workers already entitled to overtime.<\/p>\n<\/p>\n
\u2022 Provide greater clarity for workers and employers.<\/p>\n<\/p>\n
The final rule will become effective on Dec. 1, giving employers more than six months to prepare. The final rule does not make any changes to the duties test for executive, administrative and professional employees.<\/p>\n<\/p>\n
In response to the overtime rule, employers can:<\/p>\n<\/p>\n
\u2022 Pay time-and-a-half for overtime work.<\/p>\n<\/p>\n
\u2022 Raise workers salaries above the new threshold.<\/p>\n<\/p>\n
\u2022 Limit workers hours to 40 per week.<\/p>\n<\/p>\n
\u2022 Some combination of the above.<\/p>\n<\/p>\n
U.S. Sen. Patty Murray (D-Wash.) released the following statement in response to the overtime rule. She said the rule will give overworked Americans back precious time with their families by incentivizing employers to hire additional workers or give part-timers more hours that they want and need. Employers will no longer be able to force low-paid employees to work those extra hours for free. Murray has been a leading voice in Congress encouraging the Obama Administration to update overtime protections.<\/p>\n<\/p>\n
\u201cIn this country, hard work should pay off, and when workers put in extra hours on the job, they should be paid fairly for it,\u201d said Murray. \u201cBut far too many Americans have been working longer and longer hours without being fairly compensated, as businesses take advantage of weak, inadequate and outdated overtime rules.<\/p>\n<\/p>\n
“These updated worker protections will make a meaningful difference in the lives of millions of workers and their families across the country and in my home state of Washington. Strengthening basic worker protections like this will help our economy grow from the middle out, not the top down and will help ensure our economy works for everyone, not just the wealthiest few.\u201d<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
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