More than four million workers will benefit from the new ruling Obama stated regarding overtime. The Overtime Law 2016 indicates that if you work more than 40 hours a week, employees should get paid for it or get extra time off to spend with family and loved ones.
The Labor Department announced that it ha finalized the Overtime Law 2016 ruling. It enables 4.2 million workers access to overtime pay if they work more than 40 hours per week. According to a statement from The White House, "We're strengthening our overtime pay rules to make sure millions of Americans' hard work is rewarded."
However, not everyone is elated about the new Overtime Law 2016 ruling. Employers and industry businesses say that they will be forced to cut their employee's hours and benefits. Market Watch has it that it could also hurt job growth. The Economic Policy Institute explained that the lowest percentage of salaried workers benefiting in this ruling are coming from the management, business, financial, and professional occupations. This is because hourly workers tend to receive overtime already while salaried workers do not.
The five workers who will benefit the most from this new overtime ruling are the following:
1. Office and administrative support employees comprises 46% of the industry's salaried workers.
2. Transportation and material moving - 40.4%
3. Farming, forestry and fishery - 40.2%
4. Construction and extraction - 38.9%
5. Service - 38%
"The middle class is getting clobbered, although I think we're making some real progress here," says Vice President Joe Biden. "If you work overtime, you should actually get paid for working overtime," he added.
The Obama administration expects the action to increase wages for workers by $12 billion over the next decade.