According to a new proposal from President Joe Biden’s administration about Some 3.6 million workers with salaries less than $55,000 a year will be able to receive overtime pay, this in order to rectify what has been called an “obsolete” system.
This new proposal from the Department of Labor is for low-wage employees who do not receive extra pay for working more than 40 hours a week. This also suggests that to reflect the true income data, it must be updated every three years.
Jessica Looman, principal deputy director of the Department of Labor’s wage and hour division, said in the statement that “for too long, many low-wage workers have been denied overtime pay, even though they often work long hours and perform much of the same work as their hourly counterparts“, said.
Therefore, by applying this new proposal, workers will go from earning $35,568 in current dollars to $55,000 dollars per year. This same update was carried out four years ago with a 50% increase taking into consideration that at that time the salary was $23,660 dollars per year.
According to research, more and more companies are applying strategies to reduce overtime payments to their employees, In this case, they usually inflate the workers’ titles so as not to pay them in full, However, this new rule states that if your employees work more than 40 hours a week, they must be paid for their overtime.
In this sense, the proposal highlights that if an employee earns less than $1,059 dollars in salary per week, they must receive their extra payment, This new initiative will come into force in the coming months while it is subject to evaluationssince it could have major impacts on some sectors of the economy.
Source: La Opinion