The Obama administration’s effort to extend overtime eligibility to millions of workers may have stalled first in the courts and then because, well, Donald Trump. But for workers in at least one state, there’s hope of progress. Pennsylvania Gov. Tom Wolf has proposed phasing in a higher overtime eligibility threshold in his state:
The first step will raise the salary level to determine overtime eligibility for most workers from the federal minimum of $455 per week, $23,660 annually, to $610 per week, $31,720 annually, on Jan. 1, 2020. The threshold will increase to $39,832 on Jan. 1, 2021, followed by $47,892 in 2022, extending overtime eligibility to 370,000 workers and up to 460,000 in four years.
Starting in 2022, the salary threshold will update automatically every three years so workers are not left behind. Additionally, the duties for executive, administration and professional workers will be clarified to make it easier for employers to know if a worker qualifies for overtime.
The Economic Policy Institute notes that:
On overtime pay, the governor has authority to act without the state legislature. On another vital measure to improve the lives of working families, raising the minimum wage, legislative action is required—and Pennsylvania still lags its neighboring states. Unlike these six contiguous states, the Pennsylvania legislature has failed to increase the minimum wage above the federal level of $7.25.
Which is one more reason Pennsylvania’s 2018 elections will matter. A lot.
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● Here's how Trump's Labor Department quietly gave bosses even more power over their workers.
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● Why is it so hard for Americans to get a decent raise?
Since 1979, inflation-adjusted hourly pay is up just 3.41 percent for the middle 20 percent of Americans while labor’s overall share of national income has declined sharply since the early 2000s. There are lots of possible explanations for why this is, from long-term factors like the rise of automation and decline of organized labor, to short-term ones, such as the lingering weakness in the job market left over from the great recession. But a recent study by a group of labor economists introduces an interesting theory into the mix: Workers’ pay may be lagging because the U.S. is suffering from a shortage of employers.
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● The attack on workers' retirement:
In nearly all cases the public plans provide relatively modest benefits. For example, the average benefit for a retired city worker in Detroit was just over $18,000. When the city declared bankruptcy these workers were forced to take a 4.5 percent cut and give up cost-of-living increases. After two decades of missed increases, this concession may cost retirees one-third of their pensions.
In Chicago, where city workers’ pensions are seriously underfunded, the average benefit is a bit over $30,000 a year. Most news accounts fail to mention that these workers are not covered by Social Security, which means that for most this will be pretty much all their retirement income.