Home News U.S. Labor Department extends overtime pay to 1.3 million U.S. workers

U.S. Labor Department extends overtime pay to 1.3 million U.S. workers

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(Reuters) – The U.S. Department of Labor on Tuesday issued a long-awaited rule extending obligatory overtime pay for 1.3 million U.S. workers, far fewer than an Obama administration rule that was struck down by a federal decide.

A ferry employee cleans the trail for commuters throughout mild snowfall whereas the New York skyline and the One World Trade Center are seen from Exchange Place in New Jersey, U.S., March 7, 2018. REUTERS/Eduardo Munoz

Currently, workers who earn a wage relatively than hourly wages are routinely entitled to overtime pay provided that they earn lower than $23,660 a yr, a determine set in 2004. The new rule will increase the edge to $35,568 when it takes impact on Jan. 1.

Employers should pay eligible workers one and one-half occasions their common charge of pay after they work greater than 40 hours in every week. Workers who earn above the wage threshold should still be eligible for overtime pay if they don’t primarily carry out management-related duties.

Several states together with California and New York have wage thresholds for figuring out overtime eligibility which can be larger than the federal commonplace.

Acting Secretary of Labor Patrick Pizzella stated throughout a name with reporters that the division “believes there will be a broad consensus that more overtime pay for America’s workers is a positive step forward.”

The Labor Department in 2016 doubled the wage threshold to about $47,000, extending obligatory overtime pay to about 4 million U.S. workers.

A federal decide in Texas dominated the next yr, nevertheless, that the ceiling was set so excessive that it may sweep in some administration workers who’re supposed to be exempt from overtime pay protections. (reut.rs/2x8Lr66)

Business teams have carefully tracked adjustments to overtime pay laws and have been important of the Obama-era rule. Class-action lawsuits alleging unpaid overtime are frequent, and enormous firms typically pay thousands and thousands of {dollars} to settle them.

The next wage threshold may lead to extra lawsuits, since many extra workers can be coated by the federal legislation mandating overtime pay. Trade teams have additionally stated the next overtime threshold may push employers to minimize some workers’ hours.

Christine Owens, the chief director of the union-backed National Employment Law Project, stated in a press release that the rule excludes thousands and thousands of workers in varied industries who must be incomes obligatory overtime pay.

Owens stated the rule may very well be susceptible to a authorized problem as a result of it was rushed by means of the regulatory course of with out the correct consideration of its financial affect.

However, Susan Harthill of the legislation agency Morgan Lewis & Bockius, who represents employers, stated the rule supplies much-needed certainty after the Obama-era regulation was struck down.

She stated that whereas private-sector industries would be the most affected, the decrease wage threshold can be necessary for non-profits and state and native governments, whose workers are sometimes paid lower than private-sector workers.

Reporting by Daniel Wiessner in New York; Editing by Kevin Liffey and Steve Orlofsky,

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