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Home Illinois News

Obama sets into place new overtime rules for salaried employees

Illinois Review by Illinois Review
May 18, 2016
in Illinois News
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WASHINGTON – President Obama announced Friday he has set into place via executive powers a change for overtime rules – boosting salaries nationwide and costing employers – $12 billion over the next 10 years. 

Posted on the White House website is a brief explanation about the new rules, explained by Vice-President Joe Biden: 

Right now, you're guaranteed overtime if you’re an hourly worker, but if you’re salaried, you’re only automatically guaranteed overtime if you make less than $23,660. If you’re a manager on salary and you work an extra 10, 20, 30 hours a week — you often don’t get paid a dime more for those additional hours. That’s simply wrong.

Starting in December, we're making sure that more workers get paid fairly for the overtime hours that they work. With this new rule, we’re increasing the cutoff for automatic overtime for salaried workers to $47,476 — most salaried workers making less than $47,476 will be guaranteed overtime pay for working more than 40 hours a week.

Companies will have a choice: Pay their workers for the extra hours they put in, or cap their hours at 40 hours a week. For over 4 million workers, this change means they’ll either get a bump in pay or will get more time with their families if they work more than 40 hours a week. Or more time to go back to school or get additional job training.

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