In June 2015, President Obama announced a proposed change in Department of Labor rules that would extend overtime benefits to an estimated five million people nationwide. In the following months, the proposal has received national attention as businesses across industries strive to anticipate the financial impact of new regulations.
The proposal would raise the minimum salary threshold that triggers overtime pay for work over 40 hours per week. Right now, employees (in all but a few legally exempt positions, such as airline staff) earning below $23,660 per year receive overtime pay. The proposal would raise the threshold to $50,440. It also calls for automatic increases in the salary threshold going forward, either by tying it to inflation indexes or median wage levels.
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