The U.S. Department of Labor on Tuesday issued a long-awaited rule extending man...
- The U.S. Department of Labor on Tuesday issued a long-awaited rule extending mandatory overtime pay for 1.3 million U.S. workers, far fewer than an Obama administration rule that was struck down by a federal judge.
Employers must pay eligible workers one and one-half times their regular rate of pay when they work more than 40 hours in a week. Workers who earn above the salary threshold may still be eligible for overtime pay if they do not primarily perform management-related duties. The Labor Department in 2016 doubled the salary threshold to about $47,000, extending mandatory overtime pay to about 4 million U.S. workers.
A higher salary threshold could lead to more lawsuits, since many more workers would be covered by the federal law mandating overtime pay. Trade groups have also said a higher overtime threshold could push employers to cut some workers’ hours.
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