The U.S. Department of Labor on May 18 announced new overtime regulations outlining which employees are entitled to time-and-half overtime pay under the Fair Labor Standards Act. The final rule, effective Dec. 1, 2016, bumps the standard salary threshold at which executive, administrative, and professional workers are entitled to overtime pay from $23,660 to $47,476 per year.
The change to the rule means that millions of workers — including single mom Elizabeth Paredes, who was previously locked out of overtime at her job as the assistant manager of a sandwich shop – will either gain overtime protections or receive raises to meet the new salary threshold. Women like Elizabeth make up more than half, or 56 percent, of the projected 4.2 million workers who are affected by the new rule.
People of color will also directly benefit from the boosted salary threshold, according to analysis conducted by the think tank Economic Policy Institute, which suggests that 1.5 million black workers and 2 million Hispanic workers are affected. EPI’s breakdown includes those who are newly eligible for overtime protections under the updated rule, as well as those who are currently at risk of being wrongly classified under the old rule’s weaker protections.
DOL has posted more information about the overtime rule here. Factsheets for employers and workers will be available soon.
Here is the DOL video: