The Obama administration today proposed more than doubling the salary threshold that makes white-collar managers eligible for overtime pay. The Department of Labor’s long-awaited rewrite of thefor salaried administrative, executive and professional employees would raise the bar to $50,440 per year in 2016, up from the current $23,660.
The DOL estimates the move will make at least five million more workers eligible for overtime pay if they work more than 40 hours in a week.
The proposed rule doesn’t change the duties test that defines what constitutes administrative, executive and professional work, but leaves open the possibility of doing so in the future.
Business groups immediately blasted the proposed new salary basis, saying it would cost too much and cause job cuts. “There simply isn’t any magic pot of money that lets employers pay more just because the government says so,” said a statement from the Natio...(register to read more)