July 7, 2015
The federal government will make all workers who make less than $50,440 a year automatically eligible for time-and-a-half overtime pay if they work more than 40 hours a week. The new rule, announced by President Barack Obama June 29, more than doubles the previous threshold of $23,660.
It is expected to go into effect sometime next year and affect up to five million workers. “We made it known that critics are going to criticize them no matter what they do,” said Kelly Ross, deputy policy director of the AFL-CIO. “If what they want to do is have an impact on wages, they need to go big here.” The rule is expected to be challenged by business groups in the courts and/or Republicans in Congress. Read more