The U.S. Labor Department announced a revised rule that will grant overtime pay to 1.3 million American workers.
“For the first time in over 15 years, America’s workers will have an update to overtime regulations that will put overtime pay into the pockets of more than a million working Americans,” Acting U.S. Labor Secretary Labor Patrick Pizzella said in a statement. “This rule brings a commonsense approach that offers consistency and certainty for employers as well as clarity and prosperity for American workers.”
Under the new rule, salaried workers will be eligible for overtime pay if they make up to $35,568, up from $23,660, which has been the limit since 2004. President Obama tried to raised the limit to $47,476, but a judge blocked the move in 2016 under pressure from states and businesses.
Businesses are required to pay one-and-a-half times an employee’s pay for working more than 40 hours per week. Overtime pay most often applies to hourly workers, and businesses often exempt salaried employees above a certain income level.
The new rule means more salaried Americans, many of which work in restaurants, clothing stores and home health care companies, will be eligible for overtime pay.