More work, more pay? New rule extends overtime to millions

WASHINGTON— More pay could become a reality for millions of U.S. workers who now toil long hours without overtime under a new rule issued Wednesday by the Obama administration. In the fast-food and retail industries in particular, many employees are deemed managers and work long hours but are paid a flat salary that barely exceeds the income of the hourly workers they supervise who receive overtime pay. Under the new rules, released in draft form last summer, the annual salary threshold at which companies can deny overtime pay will be doubled from $23,660 to nearly $47,500. Business groups, however, argued that the changes will increase paperwork and scheduling burdens for small companies and force many businesses to convert salaried workers to hourly ones to more closely track working time. “With the stroke of a pen, the Labor Department is demoting millions of workers,” David French, a senior vice president for the National Retail Federation, said.