President Obama announces overtime pay to millions of workers
Washington, May 18: In view of the overtime work by millions of American, the Obama administration has brought a new rule that will extend overtime protections to millions of additional workers.
"Every week, millions of Americans work more than 40 hours a week but do not receive the overtime pay they have earned. Tomorrow, the Department of Labor will be finalizing a rule to fix that by updating overtime protections for workers,"said a statement issued by the White House.
"In total, the new rule is expected to extend overtime protections to 4.2 million more Americans who are not currently eligible under federal law, and it is expected to boost wages for workers by $12 billion over the next 10 years," added the statement.
This new rule is being seen as one of the most ambitious economic reforms of the Obama era.
The Labour department has finalized a new rule that will extend overtime protections to millions of additional workers.
"The overtime rule is about making sure middle-class jobs pay middle-class wages," Perez said. "Some will see more money in their pockets ... Some will get more time with their family ... and everybody will receive clarity on where they stand, so that they can stand up for their rights."
"The final rule, which takes effect on December 1, 2016, doubles the salary threshold-from $23,660 to $47,476 per year-under which most salaried workers are guaranteed overtime (hourly workers are generally guaranteed overtime pay regardless of their earnings level). Additionally, this new level will be automatically updated every three years to ensure that workers continue to earn the pay they deserve,"added the statement.
"Increasing overtime protections is another step in the President's effort to grow and strengthen the middle class by raising Americans' wages. This extra income will not only mean a better life for American families impacted by overtime protections, but will boost our economy across the board as these families spend their hard-earned wages," concluded the statement.