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Obama administration to unveil major overtime rule Wednesday

May 17, 2016 / Media Coverage / Politico — Marianne Levine, Brian Mahoney and Timothy Noah

OVERTIME TOMORROW: The Labor Department will announce its final overtime rule tomorrow. The rule will increase, to $47,500, the salary threshold under which virtually all workers are guaranteed time-and-a-half pay. Yes, that’s $500 more than we told you before. We don't know why the change. It’s also more than double the current threshold of $23,660 (though about $3000 below the threshold proposed in July).

The Labor Department considered changing the “duties test” used to determine whether people over the salary threshold qualified for overtime. (If your duties are executive, administrative, or professional, or fall into one of a few other categories, you do not.) That prospect rattled the business community, which was pretty rattled already about the new threshold. But in the end DOL decided to leave the duties test as is.

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