PSAs Explain Overtime Security Rules
New public service announcements from the U.S. Department
of Labor are urging employers and employees to learn how the
Fair Labor Standards Act will strengthen overtime protections
for 6.7 million American workers.
The new Overtime Security Rule, which went into effect in
August, clarifies and updates confusing overtime regulations
first created in 1939 and not updated since 1949.
“The new overtime rules clarify regulations that haven’t
been updated since Elvis was a teenager,” said U.S.
Secretary of Labor Elaine L. Chao. “Under the new rules,
more workers than ever before will be entitled to overtime
protection.
“Under the new rules, workers will know their overtime
rights, employers will know their responsibilities and the
department can more vigorously enforce these protections,”
she continued. “In addition, the department has undertaken
the most extensive compliance outreach on any regulation in
its history to help employers comply with the new rules.”
The new Overtime Security Rule expands the number of workers
eligible for overtime by nearly tripling the salary threshold.
Under the new rule, workers paid less than $23,660 or $455
per week are automatically guaranteed overtime regardless
of their title or duties. Under previous regulations, only
workers earning less than $8,060 annually or $155 per week
were guaranteed overtime.
A number of salaried workers earning more than the new threshold
also gained the right to overtime under the new rules, including
1.3 million salaried white collar workers who were not entitled
to overtime pay previously. Employers will pay an estimated
$375 million annually in overtime.
The new rule guarantees hourly workers overtime regardless
of how much they are paid. It does not impact union workers
under collective bargaining agreements.
For more information, visit www.dol/gov/fairpay.
[December 2004 PET AGE]
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