Reps. Takano and Wilson Applaud Progress on Overtime Proposal, Lead Education and the Workforce Committee Members in Urging a Final Rule
Washington DC – Today, Reps. Mark Takano (D-CA) and Federica Wilson (D-FL) were joined by 13 Democrats in sending a letter to Director Shaun Donovan urging the Office of Management and Budget to finalize the Labor Department’s proposed update to overtime pay rules. The letter applauds Secretary Perez’s proposal and calls for the rule to be adopted promptly to help support the fight against income inequality.
In its proposed form, the rule would update the Fair Labor Standards Act to make those earning up to $50,440 annually eligible for overtime pay, replacing the current threshold of $23,660. It would help nearly five million salaried workers earn a living wage and is expected to increase wages by $1.2 billion in the first year alone.
“There are too many Americans who are not being paid for the hours they work,” said Congressman Takano. “This proposal will help millions of hard-working families achieve the financial stability they deserve and stimulate the economy in the process. I thank the Department of Labor for pushing this proposal forward and I hope the Office of Management and Budget acts quickly in recognition of the positive impact it will have on workers across the country.”
“Overtime pay was established to protect workers from the excessive hours that endanger their health and well-being, prevent them from spending time with their families, and all but prohibit them from taking the necessary time to recover from the stresses of work,” said Congresswoman Wilson. “The Department of Labor’s proposed rule promises to restore a fair day’s pay for a fair day’s work. These strengthened overtime protections would mean so much in the daily lives of millions of Americans and are long overdue. They also would encourage employers to hire more workers instead of overworking a few, meaning more jobs for more Americans, and enable part-time workers to increase their hours.”
The overtime threshold was last revised in 2004 after nearly 30 years without an update. The new threshold would cover workers in the 40th percentile of weekly earnings. It currently covers just eight percent of the nation’s salaried workers.
The full text of the letter is available here.