The White House announced on Tuesday a new Department of Labour rule that will more than double the income threshold for overtime eligibility for salaried workers from about $US23,660 to $US50,440. The White House released an analysis of who will benefit most from that overtime expansion.
Larger proportions of southern workforces will become eligible for overtime than in other regions. The state with the largest percentage of workers affected by the new rule was Oklahoma, where the administration estimates that 4.4% of workers will now be eligible for overtime.
Still, nearly one-quarter of workers who will benefit from the new rules are from the big three states of California, Texas, and Florida:
The new rule will also affect a larger proportion of younger workers than older workers, with nearly one in 20 25- to 34-year-olds becoming eligible for overtime. Given the rule’s emphasis on salaried, white-collar workers, it’s not overly surprising that that a larger proportion of workers with at least a bachelor’s degree are affected than workers with less education. Women are more likely than men to be affected by the new rule:
Overall, the proposal will extend overtime pay to nearly 5 million workers within the first year of its implementation. The rule is long awaited, after President Barack Obama directed Labour Secretary Thomas Perez to figure out a plan to update overtime regulations.
“Of course, nothing helps families make ends meet like higher wages. … We still need to make sure employees get the overtime they have earned,” Obama said in his State of the Union address earlier this year.
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