Overtime Extension Not Quite As Bad As Expected

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.