Overtime

New overtime rule covers fewer workers than Obama version

Kimberly Adams Sep 24, 2019
HTML EMBED:
COPY
Under the new rule, employers will be required to pay overtime to employees making less than $35,568. Christopher Furlong/Getty Images
Overtime

New overtime rule covers fewer workers than Obama version

Kimberly Adams Sep 24, 2019
Under the new rule, employers will be required to pay overtime to employees making less than $35,568. Christopher Furlong/Getty Images
HTML EMBED:
COPY

Based on a new Trump administration rule set to kick in on January 1, 2020, more than a million additional workers will soon be eligible for paid overtime. The Department of Labor finalized a rule on Tuesday that will require companies to pay overtime when people making less than $35,568 a year in salary work more than 40 hours a week. The current cut off is about $24,000.

Business groups, like the U.S. Chamber of Commerce, called the new rule “balanced and responsible.” But things could have gone differently. A 2016 rule from the Obama administration would have raised that threshold even higher, to $47,476, which worker advocates say would have covered 3.2 million workers.

Click the audio player above to hear the full story.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.