News Release

OPA News Release: [09/21/2004]
Contact Name: Jane Norris
Phone Number: (202) 693-4676

New Overtime Security Rule Strengthens and Protects Workers’ Rights and Wages

Public Service Announcement Featuring Secretary of Labor Available for Stations

WASHINGTON—The U.S. Department of Labor released a Public Service Announcement (PSA) today featuring Secretary of Labor Elaine L. Chao encouraging employers and employees to learn about how the department's new Overtime Security Rule, which went into effect on August 23, 2004, will strengthen overtime protections for more workers than ever before. The PSA produced by the department is now available for station broadcast. Under the new rule, an additional 6.7 million American workers will be guaranteed overtime protection. The new overtime security rule clarifies and updates regulations that were first created in 1938. The old regulations were so obsolete and confusing that they were responsible for more federal class action lawsuits than arise under the employment discrimination laws.

“The new overtime rules clarify regulations that haven’t been updated since Elvis was a teenager,” said U.S. Secretary of Labor Elaine L. Chao. “Under the new rules, more workers than ever before will be entitled to overtime protection. That’s why the department has issued this public service announcement—to help employees and employers understand the facts and eliminate the confusion.”

“Hourly workers are automatically guaranteed overtime protection under the new Overtime Security Rule. Blue collar and manual labor workers are automatically guaranteed overtime under the new rule. And union members whose overtime rights are determined through collective bargaining are not affected by the new rule,” added Secretary Chao. “The changes primarily affect salaried white collar workers, more of whom will be entitled to overtime because the salary threshold that triggers overtime has been substantially increased.”

The new rule expands the number of workers eligible for overtime by nearly tripling the salary threshold. Under the old rules, only workers earning $8,060 annually—or $155 per week—or less were guaranteed overtime. Under the new rule, workers paid up to $23,660 annually—or $455 per week—are now automatically guaranteed overtime protection, regardless of their titles or duties. It is estimated that employers will have to pay out an additional $375 million annually in overtime under the new rule.

“Another significant feature of the new overtime rule is that it strengthens overtime protections for police, firefighters, emergency medical technicians, other first responders and licensed practical nurses,” noted Secretary Chao. “For the first time ever, their rights to overtime are spelled out clearly in the regulation so they cannot be disputed.”

Those interested in obtaining a copy of the video announcement, please contact Jane Norris (202) 693-4676. More information about the new rule is available at www.dol.gov/fairpay.

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