A proposed new rule from the U.S. Labor Department could mean millions more Americans might soon qualify for overtime pay.
According to the Wall Street Journal, the agency is proposing to raise the current salary threshold for Americans who work in excess of 40 hours per week from $455 a week to $970 a week. The salary threshold generally determines who is eligible for overtime pay.
Under existing federal rules last updated in 2004, hourly workers or those who earn a salary of less than the threshold generally are eligible for overtime pay, while white-collar workers with salaries of at least that amount generally aren’t. The new rule would extend overtime protection to about five million workers.
