Labor Secretary Thomas Perez and President Obama will announce a new rule Wednesday that will expand the number of workers eligible for overtime pay. (photo: Andrew Harrer/Bloomberg)
he Obama administration will unveil a new rule Wednesday that would make millions of middle-income workers eligible for overtime pay, a move that delivers a long-sought victory for labor groups.
The regulations, which were last updated more than a decade ago, would let full-time salaried employees earn overtime if they make up to $47,476 a year, more than double the current threshold of $23,660 a year. The Labor Department estimates that the rule would boost the pay of 4.2 million additional workers.
The change is scheduled to take effect Dec. 1.
The move caps a long-running effort by the Obama administration to aid low- and middle-income workers whose paychecks have not budged much in the last few decades, even as the top earners in America have seen their compensation soar. The last update to the rules came in 2004, and Wednesday’s announcement is the third update to the salary threshold for overtime regulations in 40 years.