PRESIDENT OBAMA EXPANDS OVERTIME PAY LAWS
Last week, President Obama announced changes to the overtime pay laws by expanding its protection to almost 5 million workers. Currently, under the Fair Labor Standards Act, workers who earn more than $455 per week, that is, $23,660 per year, cannot make a claim for overtime pay if they work in excess of 40 hours per week. However, President Obama’s proposed rule will raise the threshold from $455 per week to $970 per week ($50,440 per year) as early as next year. Meaning, after the law goes into effect, workers who make as much as $970 per week can claim overtime wages, even if they are classified as a manager or professional. The salary threshold has not been changed since the 1970s.