In a new regulation issued by the Labor Department, millions more employees will be eligible for overtime pay as early as December 1st. Under the new rules, eligible workers earning up to $47,476 a year must receive time and a half in overtime pay, a threshold previously set at $23,660 back in 2004.
Opponents of the change argue that the measure will cost businesses millions and may in fact lead to companies cutting workers’ hours to avoid overtime costs. However, proponents feel the measure is long overdue and that workers across the country will benefit overall.
Source: New York Times, “White House Increases Overtime Eligibility by Millions”, By Noam Scheiber, May 17, 2016.