Obama Changes Overtime Laws, Covers Millions Of Workers

Intended to increase earnings for middle and lower income workers, the Obama administration has issued policy changes regarding overtime pay. The expansion would make over 4 million us workers newly eligible for overtime pay and counter overtime protections. Employers are required to pay 1 and a half times a worker’s regular salary for working over 40  hours in a week. Under the new rules, the annual salary threshold that companies can deny overtime is doubled, from 23,000 dollars to about 47,000 dollars. It is estimated by the White House that the change in policy will raise pay by 1.2 billion dollars a year over the next decade. The administration believes that under these new rules quote “the worker wins.”

Fox News is reporting warnings that the rule changes may end up hurting workers, in the long run, citing an influx of paperwork and schedule burdens, converting salaried workers to hourly to better track working time, and that the directive will cost an estimated 2 billion dollars.


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