On Tuesday morning, the Department of Labor released its proposed changes to the rules regarding who is eligible for overtime pay to expand the coverage to more workers.
The proposal would increase the salary threshold to $50,440 by 2016, meaning anyone who makes that much or less would have to be paid time-and-a-half for putting in more than 40 hours a week. It would also increase the total annual compensation a worker would need to make to be exempted as a highly compensated employee, raising it to $122,148 a year for full-time salaried workers. And it would automatically update both requirements to make sure only actual executives and administrative and professional workers get exempted.
On a call with the media, Labor Secretary Thomas Perez estimated that for the subset of workers who work more than 40 hours a week and will become newly eligible for overtime pay, they will collectively see $1.2 billion to $1.3 billion in extra compensation as a result of the change.