In an op-ed piece for the Huffington Post, President Obama announced yesterday that he intends to raise the salary threshold for overtime exemption from $23,660 to $50,400 a year. The change would officially come as part of new, long-awaited proposed changes to the overtime regulations from the federal Department of Labor (DOL).
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Get Your Report Now!"We've got to keep making sure hard work is rewarded," Obama wrote in the article. "Right now, too many Americans are working long days for less pay than they deserve. That's partly because we've failed to update overtime regulations for years -- and an exemption meant for highly paid, white collar employees now leaves out workers making as little as $23,660 a year -- no matter how many hours they work.
"This week, I'll head to Wisconsin to discuss my plan to extend overtime protections to nearly 5 million workers in 2016, covering all salaried workers making up to about $50,400 next year. That's good for workers who want fair pay, and it's good for business owners who are already paying their employees what they deserve -- since those who are doing right by their employees are undercut by competitors who aren't."
You can read the entire article here.
BLR will provide full coverage and details on the proposed regs once they are released.
For more insights into what changes the DOL proposed regs might bring, see our article from earlier this month by Legal Editor Susan Prince.
Use BLR's new Overtime Rules Calculator to determine how the proposed changes will affect your organization's payroll budget.