Millions of Americans will no longer have to work overtime for free
U.S. Department of Labor this week finalized a new overtime rule, effective December 1st, that doubles the cap for salaried workers to be eligible for overtime pay to $913/week ($47,476/year), directly affecting 425,000 salaried workers in North Carolina – 156,000 more than before.
“If you work full-time in America, you should be able to get by; when you work extra, you should be able to get ahead,” said U.S. Department of Labor Secretary Tom Perez. “That’s the commonsense principle we’re reaffirming today.”
Nationally, 12.5 million workers will now benefit from overtime protections, which have also been strengthened for workers entitled to overtime.
Automatic updates to the salary threshold every 3 years will help it to keep pace with wage growth. The old level of $455/week ($23,660/year) had been unchanged since Gerald Ford was President in 1975.
“If you work more than 40 hours a week, you should get paid for it or get extra time off to spend with your family and loved ones,” said President Obama.
“Americans have spent too long working long hours and getting less in return. So wherever and whenever I can make sure that our economy rewards hard work and responsibility, that’s what I’m going to do. — President Obama, 5/17/16
“New overtime protections mark a major victory for working people that will improve the lives of millions of families across America,” said Richard Trumka, President of the AFL-CIO.
We applaud the Obama Administration heeding 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. — Richard Trumka, 5/18/16
“At just $455 per week, it was easy for employers to avoid paying overtime by classifying employees as managers and having them do the same work as hourly employees plus a few more managerial tasks,” said Workers’ Rights Project attorney Clermont Ripley to the Winston-Salem Journal.
“I have had clients who were classified as managers and paid a salary who were required to work 12- or 13-hour days doing a lot of the same work as the hourly employees they were supervising but for a lower hourly rate — often less than minimum wage.” — Clermont Ripley, 5/18/16