Overtime Extension Not Quite As Bad As Expected
Some potentially good news of the DOL Overtime rules changes was reported this morning on Politico Morning Shift:
NEW OVERTIME THRESHOLD: $47,000?: The Labor Department will lower the salary threshold in its forthcoming final rule to extend overtime coverage, Morning Shift has learned. The new threshold under consideration is $47,000, according to sources familiar with the Labor Department’s deliberations.
According to the report, they new rule will scale the new threshold back from the $50,440 amount that was originally proposed. This may help to resolve of the pressure felt by employers under this rule.
More specifics from Politico:
The Labor Department calculated that the overtime rule, as proposed, would extend coverage to nearly five million people, of whom 1.2 million would receive a wage hike, with the rest getting a reduction in hours worked. The Economic Policy Institute, a left-leaning think tank, put the number of affected workers at more like 13.5 million. Lowering the rule’s threshold to $47,000, EPI calculates, would reduce the number of affected workers to 12.5 million, or 23 percent of the salaried workforce.