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Millions of salaried staff can be newly eligible for extra time pay beneath a proposal unveiled by the Biden administration Wednesday, however the draft rule is more likely to face pushback from enterprise teams that blocked the same effort beneath former President Obama.
The proposed rule would elevate the brink beneath which staff are mechanically eligible for extra time pay to about $55,000 a yr, from the present stage of about $35,000.
Many salaried managers in low-wage industries corresponding to retail and quick meals are presently exempt from incomes extra time pay, even once they work lengthy hours.
“For over 80 years, a cornerstone of workers’ rights in this country is the right to a 40-hour workweek, the promise that you get to go home after 40 hours or you get higher pay for each extra hour that you spend laboring away from your loved ones,” mentioned Acting Secretary Julie Su.
The administration estimates the measure would make about 3.6 million salaried staff eligible for time-and-a-half pay.
In the waning days of the Obama administration, the Labor Department ordered a similar increase, boosting the brink from $23,660 to $47,476. That transfer was blocked, nevertheless, by a federal decide. The Trump administration then crafted its personal rule, utilizing the $35,000 threshold that is in place as we speak.
The Biden administration requires mechanically elevating the extra time threshold each three years, to maintain tempo with rising wages.
The National Retail Federation says it is learning the proposed rule, however suggests the rise to a $55,000 threshold is simply too giant.
“The proposed number is significantly higher than the rate of inflation,” mentioned David French, the federation’s senior vice chairman of presidency relations. “Further, the attempt to tie the hands of future administrations through automatic increases exceeds the Department’s authority.”
The Labor Department is in search of touch upon the proposed rule for 60 days.
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