A new proposal would greatly increase the number of employees eligible for overtime pay. Under the proposal, workers earning less than $35,000 a year would be eligible for overtime pay. The rule would raise the threshold under which employees can automatically earn overtime wages from the current $24,000 and would require time-and-a-half for hours worked beyond 40 hours per week. This would be the first update to overtime pay requirements in 15 years. It is anticipated that the rule could be challenged in court by worker advocates who believe it doesn’t go far enough and by business groups concerned about escalating payroll costs.
