The Department of Labor has updated the rule that determines who is eligible for overtime pay, raising the salary threshold from the current $23,660 to $47,476 a year. That means any salaried worker who makes up to $47,476 is guaranteed time-and-a-half pay for all hours worked over 40 in a week, regardless of their job title or duties. The new rule will directly benefit 12.5 million salaried workers, most of whom will be newly eligible for overtime. Importantly, it will disproportionately affect young workers, who are just starting out in their careers.
Only 2.0 million salaried millennials (age 16–34) were covered by the old overtime salary threshold. Raising the salary threshold to $47,476 will directly benefit an additional 4.5 million millennials, with most of them gaining eligibility for overtime for the first time—bringing the number of millennials covered by the overtime salary threshold to 6.5 million.
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