New overtime law makes 35 percent of salaried workers eligible

Barack Obama
FILE - In this Dec. 12, 2015 file photo, President Barack Obama speaks in the Cabinet Room of the White House in Washington. The president on Saturday, Jan. 16, 2016, proposed a set of changes to the U.S. unemployment insurance system that he says would offer more security to out-of-work Americans and encourage experienced workers to rejoin the workforce, even if it means taking a pay cut. (AP Photo/Jacquelyn Martin, File)

INDIANAPOLIS (WISH) — The Obama administration signed off on new overtime regulations Wednesday.

Now, more than four million Americans are eligible for overtime.

Under the new law, employers must pay overtime to full time workers making less than $47,476 a year, which is $913 a week.

The rules go into effect December 1st.

The White House says it’s a way to restore and expand the middle class.

35 percent of salaried workers will now be eligible for overtime. That’s up from the current seven percent.

The law also includes a provision requiring an update every three years to keep up with things like inflation.

 

 

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