only once since 1975 and now covers a mere eight percent of salaried workers, according to a recent analysis by the Economic Policy Institute. Raising the threshold to $50,440 would bring it roughly in line with the 1975 threshold, after inflation.  In 1975 the threshold covered 62 percent of salaried workers. But because of subsequent changes in the economy’s structure, the Obama administration’s proposed rule would cover a smaller percentage—about 40 percent.

 

The current overtime rules contain a white-collar exemption, which excludes “executive, administrative and professional” em-ployees from receiving overtime pay. Advocates for changing the rule say the white-collar exemption allows employers to avoid paying lower-wage workers overtime. As in the past, the new threshold will not affect t...

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