The Obama administration proposed new rules Tuesday that would allow more workers to claim overtime pay, a move that some employers say will force them to cut back on hours.
The proposal would guarantee overtime for most salaried employees who earn up to $50,440 per year. Currently, many workers who earn more than the threshold salary of $23,660 are not guaranteed the ability to claim overtime.
“Right now, too many Americans are working long days for less pay than they deserve,” President Obama wrote in an op-ed for The Huffington Post. “That’s partly because we’ve failed to update overtime regulations for years.”
The administration said the overtime standard hasn’t been updated since the 1970s, with inflation eroding overtime pay.
The new regulations, announced by the Labor Department, would affect nearly 5 million workers.
Industry groups are opposed to the proposal, saying it will increase costs and force them to lay off employees or cut back on workers’ hours.
“Overtime expansion would drive up retailers’ payroll costs while limiting opportunities to move up into management,” the National Retail Federation said in a statement. “Most workers would be unlikely to see an increase in take-home pay, the use of part-time workers could increase, and retailers operating in rural states could see a disproportionate impact.”
Debra Ness, president of the National Partnership for Women & Families, said the new rule “would keep millions of workers from being denied the pay they rightfully deserve and their families desperately need.”
“It has been three decades since the regulations that govern overtime pay have been updated in a meaningful way,” she said. “With this action, the administration is stepping up to make much-needed fixes that will help millions of workers and their families make ends meet. It is the right thing to do and the regulatory process should continue swiftly.”
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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