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Dept. of Labor makes 'token reduction' in new overtime pay threshold

Apr 29, 2016 / Media Coverage / Washington Bureau — Kent Hoover

The Department of Labor’s new rules for overtime pay may not be quite as bad for business as expected: In its final rule, the agency will make workers who make less than $47,000 a year automatically eligible for overtime pay, down from $50,440 in its proposed rule.

That’s according to Politico Pro, citing sources familiar with the Labor Department’s deliberations on the rule. The final regulation could be issued as early as next month.

The lower threshold is still nearly twice the current overtime pay threshold of $23,660, meaning millions of additional employees would qualify for overtime pay if they work more than 40 hours a week, even if they’re in managerial positions.

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“A token reduction will not alleviate the harm this rule will do to nonprofits, colleges, and small businesses and their employees. Moreover, the salary threshold must take into account regional differences in cost of living, which the current Labor Department approach does not.”

 

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