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Obama Administration Announces Expansion of Overtime Pay

In a big victory for working families, the Obama Administration announced a new rule this week to ensure that workers are paid fairly for overtime hours. Under current laws, if you are a salaried worker working more than 40 hours per week, you are only guaranteed automatic overtime pay if you make less than $23,660. The new rule increases that cutoff to $47,476 in December.

The new rule is estimated to directly benefit more than 13 million workers – about 4.2 million will be newly eligible for overtime pay, and 8.9 million who are already eligible will have an easier time proving their eligibility. The rule will increase wages and help prevent overly long workdays.