‘While the administration may be trumpeting this rule as a good thing for workers, that is a ruse’ - Are American workers being shortchanged by new rules on overtime payments?
The administration of US President Donald Trump has introduced a new labour rule that would take $1.4bn from workers’ pockets, according to a US think tank.on September 24, setting the threshold at which salaried workers are automatically entitled to overtime pay to $35,568, annually.
But the Economic Policy Institute, which describes itself as a non-partisan group that "seeks to include the needs of low- and middle-income workers in economic policy discussions", claims this rule will “leave behind” over eight million US workers who would have received guaranteed overtime under a 2016 rule.
The administration of former president Barack Obama decided to change the threshold to an annual salary of $47,476 in 2014, a number which would increase tied to inflation and cost of living. As the decision came in 2017, after Trump had assumed office, his then-Labor Secretary Alex Acosta said he wouldn’t appeal the decision.
“The 8.2 million workers left behind by this proposal are made up of 3.1 million workers who would have gotten new overtime protections under the 2016 rule and another 5.1 million workers who would have gotten strengthened overtime protections under that rule,'' ShierholzThe Trump administration considers someone “making $35,568 a year is a well-paid executive”, which is not the case, Shierholz said.
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