Cha-Ching! New Rule Expands Overtime Pay to Millions

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WASHINGTON, DC — Show me the money, baby! Starting later this year, millions more workers will become eligible for overtime pay.

Under a new rule announced by the White House Tuesday, anybody making a salary of less than $47,476 ($913 a week) will automatically qualify for overtime pay when they work more than 40 hours a week.

That’s roughly double the $23,660 threshold (or $455 a week) that’s currently in place.

The change — which has been criticized as too drastic by many employers — will go into effect on Dec. 1, 2016. They are intended to expand access to overtime pay for otherwise low-salaried workers who log long hours but have been treated as exempt from overtime because they perform some managerial duties.

Vice President Joe Biden characterized the changes as “restoring and expanding access to the middle class.”

The new threshold will be updated every three years to make sure it stays at the 40th percentile of full-time salaries in the lowest income region of the country.

Based on wage growth projections, that means it could rise to $51,000 by 2020.