The U.S. Department of Labor announced a final rule that will make 1.3 million American workers newly eligible for overtime pay
a final rule that will make 1.3 million American workers newly eligible for overtime pay under the Fair Labor Standards Act.
The current threshold of $23,700 was set by the George W. Bush administration in 2004. Prior to that, it had been $8,060 since 1975. In 2016, the Obama Administration attempted to raise the threshold to $47,000 a year, an increase that would have extended mandatory overtime pay to four million workers. But a federal judge in Texas ruled that $47,000 was too high a salary limit and blocked it in 2017.
. “The Wage and Hour Division now turns to help employers comply and ensure that workers will be receiving their overtime pay.”Allan Bloom, a partner inlabor and employment practice and the head of the firm’s wage and hour practice group, says the rule, while expected, is a compromise. “It’s a major let down for workers who were anticipating much higher increases in salary under the Obama rule,” he says.
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