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Last updated on Wednesday, July 1, 2015
(WASHINGTON D.C.) - The White House estimates 100,000 Hoosiers will become eligible for overtime pay under new rules expected to take effect next year.
The Fair Labor Standards Act exempts professionals and managers from overtime pay, unless they earn less than 455 dollars a week. But the Labor Department says an increasing number of so-called managers don't make the big salaries the exemption was aimed at.
The new rule guarantees overtime for the bottom 40-percent of earners, currently a weekly wage of 970 dollars -- just over double the existing threshold.
Secretary Thomas Perez estimates the change will inject 1.2-billion dollars into the economy. Perez says it's not clear how many employers will cough up time-and-a-half. But he says those who elect to avoid paying overtime will still have to find someone to work those hours, which will open up new jobs for someone else.
The White House calculates the change would guarantee time-and-a-half for an additional three-percent of Indiana's workforce.
The rule must go through a 60-day public comment period. The White House expects it to be finalized sometime in 2016.
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