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President Obama to raise the overtime salary threshold

The President proposed changes today that would extend overtime protections to nearly 5 million white-collar workers.

Workers who earn as much as $970 a week—$50,440 a year—would have to be paid overtime even if they’re classified as a manager or professional, according to an announcement on the DOL website.

What do you need to know about this proposed rule change?

First and foremost, if it is approved this increase would only be the second one since 1975. Secondly, because this is a “rule change”— think of it as an executive order— it doesn’t require Congress’s approval. In other words, the president can enact this change on his own.

Failure to update the overtime regulations has left an exception to overtime eligibility originally meant for highly-compensated executive, administrative, and professional employees now applying to workers earning as little as $23,660 a year.

Watch more on the President’s announcement of the rule change here:

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