From 1975 until yesterday afternoon, American workers making more than $23,660 per year were ineligible for federal overtime protection. Thanks to an update to that rule from the U.S. Department of Labor, the threshold on overtime pay has now been raised to include all employees earning less than $47,476 per year.
Approximately 12.5 million Americans will now be able to benefit from overtime pay. Of those, more than two million Latinos, or one in three of all salaried Latino employees, will be eligible for overtime, according to the Economic Policy Institute.
The news of the updated overtime rule is a welcome respite for American workers who, for too long, were working well over 40 hours per week without receiving appropriate compensation. The rule will also go a long way to closing the extreme pay gap felt by women and minorities.
“We are very pleased that the administration has acted on behalf of America’s workers who are the backbone of our economy. The rule will help ensure middle-class workers are able to see a greater benefit from their hard work. This rule will not only help individual families better meet their own needs, but will create additional economic stimulus and spending that will improve our nation’s overall economic outlook,” said NCLR Vice President Eric Rodriguez.
More information about the updated overtime rule and overtime coverage can be found on the the Department of Labor’s website.