Costa Supports Administration’s Proposed Rule to Extend Overtime Pay to 420,000 Additional Hardworking Californians

WASHINGTON, D.C. – Last week, President Obama announced that the Department of Labor will propose extending overtime pay protections to nearly 5 million salaried American workers, including 420,000 in California. This proposal would increase the current overtime protection threshold, guaranteeing overtime pay to most salaried workers earning less than an estimated $50,440 per year.

"For far too long, Americans have worked harder, but their wages have remained the same. A hard day's work should lead to a fair day's pay, and the President's proposed rule will affirm that fundamental American principle," said Rep. Jim Costa. "Millions of Americans work increasing long hours, spending time away from their families, without receiving the overtime pay they have earned. By increasing the wages of salaried employees in the San Joaquin Valley and throughout our nation, the health of our economy will improve and hard-working families will have the means to provide for their loved ones. Congress must now focus on passing a long-term transportation bill that will create more good-paying jobs, grow Americans' paychecks, and strengthen hard-working families."

The salary threshold for overtime pay for American workers has been changed only twice in the last 40 years and now covers far fewer workers due to inflation. Currently, only workers making less than $23,660 per year, which is below the poverty threshold for a family of four, are guaranteed overtime pay. This proposal updates the overtime rules to ensure that millions more Americans who work over 40 hours per week will receive overtime pay.

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