The Biden Administration is proposing a new rule that would require overtime pay for most salaried workers earning less than $55,000 per year.
“It’s going to be very expensive,” said Scott Manley, Executive Vice President of Government Relations for Wisconsin Manufacturers and Commerce. “The Biden Administration says it’s going to cost over a billion dollars and we think it’s actually going to be quite more than that. And what that’s going to mean for everybody like you and I is that businesses are going to increase their prices.”
The Obama Administration pitched a similar proposal in 2016. It would’ve raised the overtime pay salary threshold to $47,476. The proposal was blocked in federal court in 2017.
“The federal court found that presidents don’t have the legal authority to do this,” said Manley. “So we think it’s illegal, the federal courts have said it’s illegal and we think it’s likely to be challenged and struck down.”
