1.3 million lower-paid managers to get overtime
The Department of Labor is raising the salary threshold for lower-paid salaried workers. Those with professional, administrative or executive duties will be entitled for overtime pay when they work more than 40 hours a week. The current overtime eligibility salary threshold is $23,660, and has not been raised since 2004. The new salary threshold adopted by the Trump administration Department of Labor is $35,568 per year.
Under the Obama administration, labor department adopted a salary threshold of $47,476 per year, which would have been increased annually to keep up with inflation. That rule was blocked in the courts in late 2016, just before it was to go into effect. The Trump administration opted not to defend the earlier Obama-era rule in court and in September 2019 announced a new, lower salary threshold with no annual indexing for inflation, to take effect Jan. 1, 2020.
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