OVERTIME: FINALLY, A BREAK FOR THE MIDDLE CLASS
U.S. Department of Labor just proposed raising the overtime threshold – what you can be
paid and still qualify to be paid “time-and-a-half” beyond 40
hours per week – from $23,600 a year to $50,400.
This is a big deal. Some 5
million workers will get a raise. (See accompanying video, which we made last month.)
lobbies are already hollering this will kill jobs. That’s what they always predict – whether it’s raising the
minimum wage, Obamacare, family and medical leave, or better worker
safety. Yet their predictions never turn out to be true.
fact, the new rule is likely to increase the number of jobs. That’s because employers
who don’t want to pay
overtime have an obvious option: They can hire more workers and employ each of them
for no more than 40 hours a week.
It’s high time for
this change. When the overtime threshold was at its peak a half-century ago,
more than 60 percent of salaried workers qualified for overtime pay. But inflation
has eroded that old threshold. Today, only about 8 percent of salaried workers
pay has become such a rarity that many Americans don’t even