The Trump administration’s new overtime pay proposal is based on the absurd notion that someone being paid $35,308/year in 2020 is a well-paid executive who doesn’t need or deserve overtime protections.
*Update: Final Overtime Pay Rules Revisions Announced setting the minimum salary for exempt employees at $35,568 per year or $684 per week.
The economy has largely recovered since the Great Recession, but far too many working families are still being left behind. In order for economic growth to reach workers, not just the wealthy few, we need updated rules governing worker protections such as overtime pay and the minimum wage.
What Would the Restoring Overtime Pay Act Do for Workers?
The Restoring Overtime Pay Act would increase the threshold from the current $23,660/year to $51,064 — and automatically update the level going forward. This bill codifies the Obama administration’s 2016 overtime rule, which would have strengthened overtime protections for millions of workers but was blocked by a November 2016 ruling out of a federal district court in Texas that prevented the rule from being implemented. The reintroduction of this bill comes at a time when the Trump administration is proposing to deny millions of workers the overtime pay they have earned.
Last month, EPI Senior Economist and Director of Policy Heidi Shierholz testified before the U.S. House of Representatives about the Trump administration’s misguided efforts to weaken overtime. According to the Economic Policy Institute, a preliminary calculation suggests that well over half of the workers who would have gotten new or strengthened overtime protections under the 2016 rule would be left behind by this proposed Trump administration rule. This means the administration’s rule would leave out millions of workers. She made the point that since “the [Department of Labor] won’t act to help these workers, Congress should intervene to set the threshold to the higher level.”
A Few Words from the Sponsors
“People who work 50 or 60 hours a week should be paid the wages they’ve earned. Period,” said Sen. Brown. “By failing to stand up for workers and defend the overtime rule, the President is failing to put workers first and is driving down the value of work. Our bill would fix this, and make sure workers are paid for every hour they put in.”
“Millions of workers put in more than 40 hours a week and are still unable to make ends meet and support their families,” said Sen. Murray. “While the Trump Administration continues to put corporations and billionaires ahead of working families, I’m proud to introduce the Restoring Overtime Pay Act to provide a much-needed update to our nation’s overtime rules and give millions of families the financial security they need.”
“Restoring overtime protections for workers reflects our commitment to creating an economy that works for everyone,” said Chairman Robert C. “Bobby” Scott. “Unfortunately, rather than supporting the strong protections included in the Obama-era overtime rule, the Trump administration issued a new proposal that would leave 8.2 million workers behind, depriving them of a combined $1.6 billion in lost wages in the next year alone. The Restoring Overtime Pay Act would codify the salary level set in the 2016 Obama overtime rule and guarantee that more salaried workers get the overtime pay they deserve.”
“American workers cannot afford to get cheated out of the pay they earned for the extra hours they worked,” said Rep. Mark Takano. “Overtime standards are long overdue for a meaningful update that will protect more workers and put money back in the pockets of millions of middle-class families. We must return to the fundamental American belief in fair pay for a hard day’s work and this legislation will help us get closer to achieving that.”
Send a Message to Congress – Don't Weaken the Overtime Pay Rules
Join with many others who care about workers and the right to fair overtime pay and send a clear message to Congress — that we will not tolerate a weakening of our overtime rules. Demand an economy that works for everyone. Tell Congress to pass the Restoring Overtime Pay Act to boost the wages of over 8 million working people.
SIGN NOW: PROTECT OVERTIME FROM TRUMP’S ATTACKS.
Are You Being Cheated Out of Overtime Pay?
Workers should remember that the general rule under both federal and state labor laws on overtime is that almost all types of compensation must be included in the regular rate, which is then multiplied by 1.5 to calculate the rate for each overtime hour.
If you are not being paid 1.5 times your regular rate of pay for all overtime hours and/or certain types of compensation are not being counted towards your regular rate on which overtime pay is based, or if you are not sure that your overtime pay is being calculated correctly, contact us for a free and confidential review of your specific situation, and to see how much you may be owed in back pay.