U.S. Sen. Mikulski, Rep. Harris React to President Obama’s Expansion of Overtime Pay Protection

From the Office of U.S. Sen. Barbara Mikulski:

MIKULSKI APPLAUDS EXPANSION OF OVERTIME PAY PROTECTIONS FOR MILLIONS OF AMERICANS

U.S. Department of Labor expanded protections expected to increase access to overtime pay for 80,000 Marylanders

WASHINGTON — U.S. Senator Barbara A. Mikulski, a senior member of the Senate Health, Education, Labor and Pensions (HELP) Committee, today applauded the Administration’s expansion of overtime pay protections for millions of Americans. President Obama’s actions will more than double the overtime threshold for full-time, salaried workers from $23,660 to $47,476. With this policy change, the U.S. Department of Labor (DOL) expects to strengthen overtime protections for 4.2 million employees, including 80,000 in Maryland.

“Right now, millions of Americans are working more than full-time but are not being paid their fair share. A full-time job should not mean full-time poverty,” Senator Mikulski said. “I applaud the President’s action to increase access to overtime pay. Hardworking families deserve a government on their side. This action will help those trying to get to the middle class get there, and help those already in the middle class stay there.”

The overtime threshold was created in 1938 when Congress passed the Fair Labor Standards Act (FLSA). It requires employers to pay workers time-and-a-half, or 1.5 times an employees’ regular rate of pay, for every hour worked in excess of 40 hours in a work week. The DOL is responsible for setting a salary threshold, and any full-time, salaried employees earning less than that threshold are eligible for overtime pay.

The overtime threshold had not been significantly increased in over forty years. The overtime salary threshold has steadily declined since the 1970s, and has only been updated once since 1975. The current overtime threshold of $23,660 per year falls below the poverty line for a family of four. Today’s action to increase the threshold to $47,476 will return the overtime salary threshold to its original intent, and will restore the benefit to the middle class.

From the office of Congressman Andy Harris:

Congressman Harris’ Statement on Overtime Rule

WASHINGTON, DC: Congressman Andy Harris (MD-01) released the following statement in response to the Department of Labor’s finalized overtime rule:

“The Labor Department’s drastic changes to the federal overtime rule will force millions of workers to adhere to strict limits on the number of hours they work, lose their ability to work from home, and diminish their opportunity for advancement in the workplace. As a result of the new rule, many businesses will need to lay off employees and actually reduce hourly pay. Instead of working with Congress to update the federal overtime rules, President Obama unilaterally made yet another job-killing decree, which will have devastating consequences on our economy and working families.”