The Obama administration plans to raise the wages of millions of Americans who work more than 40 hours a week by requiring employers to pay them overtime.
Workers who earn as much as $970 a week would have to be paid overtime even if they’re classified as a manager or professional, according to a plan outlined on the Department of Labor website Tuesday. The White House issued a fact sheet Tuesday that said 4.7 million workers nationwide would be affected within the first year.
Many employees now receiving as little as $455 a week, or $23,660 a year -- below the federal poverty line for a family of four -- aren’t entitled to overtime pay because they are classified as managers.
“A hard day’s work deserves a fair day’s pay,” Obama wrote. “That’s at the heart of what it means to be middle class in America.”
The regulations would take effect in 2016 and extend overtime pay to 420,000 workers in California, 400,000 in Texas, and 290,000 in New York, according to a state-by-state breakdown from the White House. Workers in retail stores and restaurants are among those most likely to be affected.