This morning, the Department of Labor announced that it will raise the threshold under which all workers are eligible for overtime pay to $50,440. This higher threshold will ensure that hard work is rewarded, guaranteeing 15 million more workers overtime pay on the basis of their salary alone. It will boost wages, which have been largely stagnant for the past three and half decades, create hundreds of thousands of jobs, and give more family time to millions of working parents. Under the new threshold, 3.1 million mothers and 3.2 million fathers will be guaranteed overtime pay, and 12.1 million children will benefit from their parents’ overtime coverage. Indexing the threshold guarantees that the law’s important protections will not be diminished by inflation. We applaud President Obama and Secretary Perez for this bold action.

Ross Eisenbrey, Vice President of EPI, is available for comment.