Millennial Workers Would See Huge Benefits From President Obama’s New Overtime Rule
Time is money. But for many American salaried workers more time working isn’t translating into more money. President Obama’s proposal to reform overtime rules would help change that. By raising the level at which salaried employees are guaranteed overtime, from $23,660 to $50,440 a year, the new rule would guarantee millions of salaried workers more money for the extra hours they are already working or more time outside their jobs to spend with friends and family. Either way, it’s a win for workers.
We’ve talked about the many of benefits of the rule before. But Millennial workers in particular stand to gain from the new rule. Millennials entered the job market in a recovering economy, which left them with even fewer options to demand fair pay and reasonable schedules. The decades long erosion of worker’s rights has left huge barriers to financial security for Millennials who are struggling to pay off debt, begin their careers, and start families.
Here are a few more facts showing how important the overtime rule would be for millennial workers:
- Under the new rule a total of 6.7 million Millennials would be guaranteed overtime pay. The current overtime salary threshold guarantees 2 million Millennials overtime pay, and the new rule would directly benefit an addition 4.7 million.
- Millennials make up a disproportionate share of workers who would benefit from the proposed rule. Millennials represent 28 percent of the total salaried workforce but 35.2 percent of workers who would benefit from the new rule.
- Millennials are more likely than older generations to earn salaries below the proposed threshold. In 2013, 41 percent of 25- to 34-year-olds with full-time salaries in exempt roles made less than the proposed threshold of $50,440 and 70 percent of 16- to 24-year-olds in exempt roles earned below the new threshold.
- Millennial women will see especially large gains in coverage. Half of currently exempt Millennial women workers would be newly guaranteed overtime pay under the new law.
In order for these benefits to become reality, we need your help. The public has until September 4th to submit comment letters to the Department of Labor. If you haven’t already, go to FixOvertime.org or MisHorasExtras.org to submit a comment and show your support.
BOTTOM LINE: Millennial workers bore the brunt of the damage caused by the great recession and as a result face huge barriers to financial security. Strengthening overtime protections will help ensure Millennial workers’ rights to fair pay and reasonable hours, and is an essential step in ensuring economic security for future generations.
The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.