AAUW Statement on New Overtime Compensation Rule
May 18, 2016 AAUW and our 170,000 members and supporters across the country applaud the U.S. Department of Labor for issuing its final rule on overtime compensation protections, which reflects the current economic realities facing women and their families nationwide. AAUW strongly advocated for the new rule because it provides long awaited and improved overtime protections for millions of salaried workers, more than half of whom are women, and it is a critical part of addressing the gender pay gap.
Federal overtime policies haven’t kept up with the times. In 1975, more than 60 percent of employees qualified for overtime pay based on their salaries, whereas today that figure is just 7 percent. The new rule will derail an all-too-common practice: Research shows that employers routinely “promote” previously nonexempt workers (those eligible to earn overtime pay) to salaried, low-level managerial positions that demand more than 40 hours of work each week without overtime pay. AAUW believes that the strengthened rule will help address that problematic practice, which essentially denies millions of workers reasonable overtime pay. By raising the overtime salary threshold, the Department of Labor has taken a commonsense step toward achieving pay equity and economic security for millions of working families.
AAUW supports the rule to raise the salary threshold for automatic overtime pay for full-time salaried workers.
Unlike the majority of developed countries worldwide, the United States does not guarantee paid annual leave, paid time off for illness or family care, and paid parental leave.
You’ve probably heard that men are paid more than women are paid over their lifetimes. But what does that mean?