Overtime Threshold Lifted

Workers won’t mind prestige loss of new pay rule: Litwin
Wednesday, May 18, 2016

The Dec. 1 overtime change announced this week by the U.S. Department of Labor means an immediate monetary boon for millions of workers, said Associate Professor Adam Seth Litwin.

Salaried employees earning less than $47,476 annually will be guaranteed time-and-half pay for work time exceeding 40 hours weekly. The current threshold is $23,660.

“Our society attaches more status to salaried roles rather than hourly roles. But, for the lion's share of workers facing this ‘demotion,’ the promise of more money in their pockets far outweighs concern over a decline in status,” Litwin said.

“These workers know better than anyone that you can’t eat prestige and that it can’t clothe, feed or supervise your children.”

The labor department is slated to update the overtime threshold every three years to make sure it keeps pace with inflation.