APPLETON, WI (WTAQ-WLUK) — The Biden Administration is proposing a new rule that would make 3.6 million more American workers eligible for overtime pay.
It would guarantee overtime pay for most salaried workers earning less than $55,000 per year.
Most workers making less than $1,059 per week would automatically be entitled to overtime pay under the Department of Labor’s new proposal. It’s a jump from the current number of $684 a week, which equals $35,568 annually.
“It’s going to be very expensive,” said Scott Manley, Executive Vice President of Government Relations for Wisconsin Manufacturers and Commerce. “The Biden Administration says it’s going to cost over a billion dollars and we think it’s actually going to be quite more than that.”
According to ZipRecruiter, the average salary in Wisconsin is $50,277 a year, which is $24 an hour.
Manley says the new proposal is concerning.
“And what that’s going to mean for everybody like you and I is that businesses are going to increase their prices,” he said.
The proposed rule would:
- Restore and extend overtime protections to low-paid salaried workers.
- Give workers who are not exempt executive, administrative or professional employees valuable time back.
- Prevent a future erosion of overtime protections and ensure greater predictability.
- Restore overtime protections for U.S. territories.
“We are committed to ensuring that all workers are paid fairly for their hard work,” said Principal Deputy Wage and Hour Division Administrator Jessica Looman in statement. “For too long, many low-paid salaried workers have been denied overtime pay, even though they often work long hours and perform much of the same work as their hourly counterparts.”
“If this becomes law is that you’re likely to see workers having their hours cut and even their jobs cut,” said Manley.
The Obama Administration pitched a similar proposal in 2016. It would’ve raised the overtime pay salary threshold to $47,476. The proposal was blocked in federal court in 2017.
“The federal court found that presidents don’t have the legal authority to do this,” said Manley. “So we think it’s illegal, the federal courts have said it’s illegal and we think it’s likely to be challenged and struck down.”
Gov. Tony Evers made a stop in Appleton Wednesday to talk about workforce challenges in healthcare. He was asked about his opinion of the new proposal.
“I haven’t had a chance to even think about that, so I’m going to take a pass but whatever we need to do to increase resources to make sure we have enough great workers in the healthcare industry, I think it’s important,” said Evers.
Upon publication in the Federal Register, the notice of proposed rule making will be open for public comment for 60 days.
