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More than eight million workers will be left behind by the Trump overtime rule: Workers would receive $1.4 billion less than under the 2016 rule [1]

['Posted', 'September', 'At Am']

Date: 2024-11

More than eight million workers will be left behind by the Trump overtime rule

Yesterday, the U.S. Department of Labor announced its final overtime rule, which will set the salary threshold under which salaried workers are automatically entitled to overtime pay to $35,568 a year. The rule leaves behind millions of workers who would have received overtime protections under the much stronger rule, published in 2016, that Trump administration chose to abandon.

For quick details on the history of this rulemaking, see this statement. The two tables below show just how many workers this administration is turning its back on with this rule, and how much money workers will lose. Using the same methodology used by the Department of Labor in their estimates of the economic impact of the rule, I estimate that 8.2 million workers who would have benefited from the 2016 rule will be left behind by the Trump administration’s rule, including 3.2 million workers who would have gotten new overtime protections under the 2016 rule and 5.0 million who would have gotten strengthened overtime protections under the 2016 rule. As the table shows, this administration is turning its back on 4.2 million women, 2.7 million parents of children under the age of 18, 2.9 million people of color, and 4.6 million workers without a college degree.

Table 1 Number of salaried workers left behind by the Trump overtime rule, by demographic group Workers left behind by 2019 rule Under the 2016 rule Under the 2019 rule Total workers left behind Workers who would have gotten new protections under 2016 rule Workers who would have gotten strengthened protections under 2016 rule Total affected workers Workers with new protections Workers with strengthened protections Total affected workers Workers with new protections Workers with strengthened protections Total salaried workers All 8,210,000 3,230,000 4,980,000 13,470,000 4,550,000 8,920,000 5,260,000 1,320,000 3,950,000 59,140,000 Gender Male 4,000,000 1,410,000 2,590,000 6,560,000 1,970,000 4,590,000 2,560,000 560,000 1,990,000 32,570,000 Female 4,210,000 1,820,000 2,390,000 6,910,000 2,580,000 4,340,000 2,710,000 760,000 1,950,000 26,570,000 Parental Status Not a parent 5,500,000 2,170,000 3,330,000 9,060,000 3,060,000 6,000,000 3,550,000 890,000 2,660,000 37,470,000 Father 1,330,000 450,000 870,000 2,130,000 630,000 1,510,000 810,000 180,000 630,000 12,210,000 Mother 1,380,000 600,000 770,000 2,280,000 860,000 1,420,000 900,000 250,000 650,000 9,460,000 Race/ethnicity White 5,260,000 2,230,000 3,030,000 8,220,000 3,120,000 5,100,000 2,960,000 890,000 2,070,000 40,680,000 Black 1,000,000 340,000 650,000 1,680,000 480,000 1,200,000 680,000 140,000 540,000 5,460,000 Hispanic 1,240,000 360,000 880,000 2,410,000 530,000 1,880,000 1,170,000 170,000 1,000,000 7,230,000 Asian 560,000 240,000 320,000 930,000 340,000 580,000 370,000 100,000 260,000 4,810,000 Others 140,000 50,000 90,000 230,000 70,000 160,000 90,000 20,000 70,000 960,000 Age 16–24 500,000 200,000 290,000 1,000,000 320,000 680,000 500,000 120,000 380,000 2,800,000 25–34 2,400,000 1,040,000 1,360,000 3,840,000 1,420,000 2,420,000 1,440,000 380,000 1,060,000 13,510,000 35–44 1,830,000 710,000 1,120,000 2,930,000 980,000 1,950,000 1,100,000 270,000 830,000 14,550,000 45–54 1,800,000 670,000 1,130,000 2,880,000 940,000 1,940,000 1,080,000 260,000 810,000 14,330,000 55–64 1,330,000 470,000 860,000 2,170,000 670,000 1,500,000 840,000 200,000 650,000 10,720,000 65+ 350,000 130,000 220,000 660,000 220,000 440,000 310,000 90,000 220,000 3,220,000 Education Less than high school 310,000 40,000 270,000 800,000 60,000 740,000 500,000 30,000 470,000 1,980,000 High school 1,900,000 450,000 1,450,000 3,470,000 680,000 2,780,000 1,570,000 230,000 1,340,000 9,240,000 Some college 2,400,000 830,000 1,570,000 4,040,000 1,210,000 2,830,000 1,640,000 380,000 1,270,000 12,080,000 College degree 2,650,000 1,330,000 1,320,000 3,800,000 1,790,000 2,000,000 1,150,000 460,000 680,000 20,810,000 Advanced degree 950,000 580,000 370,000 1,360,000 800,000 570,000 410,000 220,000 190,000 15,030,000 States All 8,210,000 3,230,000 4,980,000 13,470,000 4,550,000 8,920,000 5,260,000 1,320,000 3,950,000 59,140,000 Alabama 110,000 40,000 70,000 180,000 70,000 110,000 70,000 20,000 50,000 720,000 Alaska 10,000 – 10,000 20,000 10,000 10,000 10,000 – 10,000 100,000 Arizona 150,000 70,000 80,000 240,000 90,000 150,000 90,000 20,000 70,000 1,130,000 Arkansas 80,000 30,000 40,000 130,000 50,000 80,000 50,000 10,000 40,000 450,000 California 780,000 300,000 480,000 1,290,000 430,000 870,000 510,000 130,000 380,000 6,640,000 Colorado 170,000 60,000 110,000 280,000 90,000 190,000 110,000 30,000 80,000 1,240,000 Connecticut 70,000 30,000 40,000 120,000 40,000 70,000 40,000 10,000 30,000 720,000 Delaware 30,000 10,000 20,000 40,000 10,000 30,000 20,000 – 10,000 180,000 Washington, D.C. 20,000 10,000 10,000 30,000 10,000 20,000 10,000 – 10,000 240,000 Florida 680,000 270,000 420,000 1,160,000 380,000 780,000 480,000 110,000 370,000 3,880,000 Georgia 340,000 130,000 210,000 570,000 180,000 390,000 230,000 50,000 180,000 2,100,000 Hawaii 40,000 10,000 30,000 60,000 20,000 50,000 30,000 10,000 20,000 250,000 Idaho 40,000 20,000 20,000 70,000 20,000 40,000 30,000 10,000 20,000 250,000 Illinois 330,000 140,000 190,000 510,000 180,000 330,000 190,000 40,000 140,000 2,500,000 Indiana 160,000 70,000 90,000 270,000 100,000 170,000 110,000 30,000 80,000 1,090,000 Iowa 80,000 30,000 40,000 120,000 50,000 70,000 40,000 10,000 30,000 510,000 Kansas 60,000 30,000 40,000 110,000 40,000 70,000 40,000 10,000 30,000 480,000 Kentucky 110,000 40,000 60,000 170,000 60,000 110,000 70,000 20,000 50,000 660,000 Louisiana 120,000 40,000 80,000 200,000 60,000 140,000 80,000 20,000 60,000 730,000 Maine 30,000 10,000 20,000 50,000 20,000 30,000 20,000 – 10,000 220,000 Maryland 150,000 60,000 90,000 250,000 90,000 160,000 90,000 30,000 70,000 1,400,000 Massachusetts 180,000 80,000 110,000 300,000 110,000 190,000 120,000 30,000 80,000 1,670,000 Michigan 190,000 90,000 110,000 300,000 120,000 180,000 100,000 30,000 70,000 1,530,000 Minnesota 130,000 50,000 80,000 180,000 70,000 110,000 50,000 10,000 40,000 1,060,000 Mississippi 70,000 20,000 40,000 120,000 30,000 80,000 50,000 10,000 40,000 410,000 Missouri 160,000 80,000 90,000 260,000 100,000 160,000 100,000 20,000 70,000 1,030,000 Montana 20,000 10,000 10,000 30,000 10,000 20,000 10,000 – 10,000 130,000 Nebraska 50,000 20,000 30,000 80,000 30,000 50,000 30,000 10,000 20,000 330,000 Nevada 70,000 20,000 50,000 120,000 40,000 80,000 50,000 10,000 30,000 430,000 New Hampshire 30,000 20,000 20,000 50,000 20,000 30,000 20,000 10,000 10,000 280,000 New Jersey 280,000 100,000 180,000 450,000 140,000 320,000 170,000 40,000 130,000 2,200,000 New Mexico 40,000 10,000 20,000 70,000 20,000 50,000 30,000 10,000 20,000 280,000 New York 600,000 210,000 390,000 1,000,000 290,000 710,000 400,000 80,000 320,000 4,250,000 North Carolina 280,000 100,000 170,000 440,000 150,000 290,000 170,000 40,000 120,000 1,820,000 North Dakota 20,000 10,000 10,000 30,000 10,000 20,000 10,000 – 10,000 120,000 Ohio 230,000 100,000 120,000 370,000 150,000 220,000 150,000 50,000 100,000 1,770,000 Oklahoma 100,000 40,000 60,000 170,000 50,000 110,000 70,000 20,000 50,000 640,000 Oregon 90,000 40,000 50,000 150,000 50,000 90,000 50,000 20,000 40,000 670,000 Pennsylvania 310,000 130,000 180,000 490,000 190,000 310,000 190,000 60,000 130,000 2,220,000 Rhode Island 20,000 10,000 10,000 40,000 20,000 20,000 10,000 – 10,000 190,000 South Carolina 150,000 60,000 90,000 230,000 80,000 150,000 80,000 20,000 60,000 870,000 South Dakota 20,000 10,000 10,000 30,000 10,000 20,000 10,000 – 10,000 120,000 Tennessee 180,000 80,000 100,000 280,000 100,000 180,000 110,000 30,000 80,000 1,090,000 Texas 820,000 300,000 520,000 1,430,000 430,000 1,000,000 610,000 130,000 480,000 5,480,000 Utah 60,000 30,000 40,000 100,000 40,000 60,000 40,000 10,000 30,000 500,000 Vermont 20,000 10,000 10,000 30,000 10,000 20,000 10,000 – 10,000 110,000 Virginia 220,000 80,000 140,000 380,000 120,000 260,000 160,000 40,000 120,000 1,890,000 Washington 150,000 60,000 100,000 230,000 80,000 160,000 80,000 20,000 60,000 1,300,000 West Virginia 40,000 10,000 20,000 60,000 20,000 40,000 30,000 10,000 20,000 240,000 Wisconsin 120,000 50,000 70,000 180,000 70,000 110,000 60,000 20,000 40,000 930,000 Wyoming 10,000 – 10,000 20,000 10,000 10,000 10,000 – 10,000 80,000 Note: Subtotals may not add up to totals due to rounding. Following the methodology used by the U.S. Department of Labor, the estimates include all workers affected by the federal salary threshold increase, and do not account for higher state salary thresholds. Source: EPI analysis of pooled Current Population Survey Outgoing Rotation Group microdata, 2016–2018, following the methodology used in the U.S. Department of Labor’s 2019 final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” 29 CFR Part 541 (published September 24, 2019). Share on Facebook Tweet this chart Embed Copy the code below to embed this chart on your website. Download image

With this rule, the Trump administration is cheating workers out of billions. The annual wage gains from this rule are $1.4 billion dollars less than they would have been under the 2016 rule—and these annual earnings losses balloon over time because the Trump administration neglected to include automatic indexing in their rule. Once again, President Trump has turned his back on the working people of this country.

Table 2 The total annual wages workers will lose under the Trump overtime rule will grow to $1.8 billion in the first 10 years of implementation : Projected wages workers lose under the Trump overtime rule relative to the 2016 rule in the first 10 years of implementation of the Trump rule Projected standard threshold under the 2016 rule Standard threshold under the 2019 rule Wages lost under the 2019 rule relative to the 2016 rule Total wage increase under the 2016 rule Total wage increase under the 2019 rule 2020 $51,064 $35,568 $1,431,100,000 $1,787,200,000 $356,100,000 2021 $51,064 $35,568 $1,334,500,000 $1,606,000,000 $271,500,000 2022 $51,064 $35,568 $1,246,300,000 $1,477,100,000 $230,800,000 2023 $55,055 $35,568 $1,579,900,000 $1,770,700,000 $190,800,000 2024 $55,055 $35,568 $1,459,000,000 $1,632,400,000 $173,400,000 2025 $55,055 $35,568 $1,360,300,000 $1,504,200,000 $144,000,000 2026 $59,098 $35,568 $1,663,800,000 $1,798,500,000 $134,700,000 2027 $59,098 $35,568 $1,560,800,000 $1,687,000,000 $126,200,000 2028 $59,098 $35,568 $1,473,600,000 $1,595,800,000 $122,200,000 2029 $63,346 $35,568 $1,826,900,000 $1,938,300,000 $111,400,000 Notes: Subtotals may not add up to totals due to rounding. Following the methodology used by the U.S. Department of Labor, the estimates include all workers affected by the federal salary threshold increase, and do not account for higher state salary thresholds. Calculations account only for wage increases of workers with new protections (i.e., they do not account for workers with strengthened protections). Source: EPI analysis of pooled Current Population Survey Outgoing Rotation Group microdata, 2016–2018, following the methodology used in the U.S. Department of Labor’s 2019 final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” 29 CFR Part 541 (published September 24, 2019). Share on Facebook Tweet this chart Embed Copy the code below to embed this chart on your website. Download image

Table 3 The total annual wages workers will lose under the Trump overtime rule in 2020, by state Wages lost under the 2019 rule relative to the 2016 rule Total wage increase under the 2016 rule Total wage increase under the 2019 rule US Total $ 1,431,100,000 $ 1,787,200,000 $ 356,100,000 Alabama $ 17,600,000 $ 23,700,000 $ 6,100,000 Alaska $ 2,400,000 $ 3,100,000 $ 800,000 Arizona $ 29,000,000 $ 35,900,000 $ 6,800,000 Arkansas $ 11,200,000 $ 14,600,000 $ 3,400,000 California $ 133,000,000 $ 167,100,000 $ 34,100,000 Colorado $ 32,400,000 $ 44,600,000 $ 12,200,000 Connecticut $ 12,400,000 $ 15,800,000 $ 3,400,000 Delaware $ 3,200,000 $ 4,000,000 $ 800,000 Washington, D.C. $ 4,700,000 $ 6,000,000 $ 1,300,000 Florida $ 98,700,000 $ 117,500,000 $ 18,700,000 Georgia $ 43,400,000 $ 53,200,000 $ 9,700,000 Hawaii $ 4,400,000 $ 5,200,000 $ 900,000 Idaho $ 6,400,000 $ 8,300,000 $ 1,900,000 Illinois $ 68,500,000 $ 81,000,000 $ 12,400,000 Indiana $ 33,000,000 $ 40,300,000 $ 7,300,000 Iowa $ 20,400,000 $ 23,700,000 $ 3,300,000 Kansas $ 15,300,000 $ 17,900,000 $ 2,600,000 Kentucky $ 21,400,000 $ 28,800,000 $ 7,300,000 Louisiana $ 20,300,000 $ 25,100,000 $ 4,800,000 Maine $ 8,500,000 $ 9,900,000 $ 1,400,000 Maryland $ 30,800,000 $ 42,100,000 $ 11,300,000 Massachusetts $ 38,500,000 $ 51,500,000 $ 13,000,000 Michigan $ 49,100,000 $ 64,100,000 $ 15,100,000 Minnesota $ 28,500,000 $ 34,100,000 $ 5,600,000 Mississippi $ 9,500,000 $ 12,400,000 $ 2,900,000 Missouri $ 34,400,000 $ 39,700,000 $ 5,300,000 Montana $ 4,500,000 $ 5,300,000 $ 800,000 Nebraska $ 10,000,000 $ 12,500,000 $ 2,500,000 Nevada $ 10,000,000 $ 12,200,000 $ 2,100,000 New Hampshire $ 6,800,000 $ 8,800,000 $ 2,000,000 New Jersey $ 34,800,000 $ 44,300,000 $ 9,500,000 New Mexico $ 5,100,000 $ 6,800,000 $ 1,700,000 New York $ 80,100,000 $ 99,300,000 $ 19,100,000 North Carolina $ 45,700,000 $ 55,100,000 $ 9,400,000 North Dakota $ 3,200,000 $ 3,900,000 $ 700,000 Ohio $ 45,000,000 $ 60,900,000 $ 15,900,000 Oklahoma $ 14,700,000 $ 19,900,000 $ 5,200,000 Oregon $ 19,400,000 $ 26,500,000 $ 7,100,000 Pennsylvania $ 51,500,000 $ 67,600,000 $ 16,100,000 Rhode Island $ 4,600,000 $ 6,700,000 $ 2,100,000 South Carolina $ 19,400,000 $ 23,700,000 $ 4,300,000 South Dakota $ 3,300,000 $ 3,600,000 $ 400,000 Tennessee $ 33,000,000 $ 42,000,000 $ 9,100,000 Texas $ 141,700,000 $ 173,100,000 $ 31,400,000 Utah $ 16,500,000 $ 19,900,000 $ 3,400,000 Vermont $ 4,100,000 $ 4,700,000 $ 600,000 Virginia $ 28,200,000 $ 35,300,000 $ 7,100,000 Washington $ 40,500,000 $ 44,800,000 $ 4,300,000 West Virginia $ 5,000,000 $ 6,400,000 $ 1,300,000 Wisconsin $ 24,100,000 $ 31,200,000 $ 7,100,000 Wyoming $ 2,600,000 $ 3,200,000 $ 600,000 Notes: Subtotals may not add up to totals due to rounding. Following the methodology used by the U.S. Department of Labor, the estimates include all workers affected by the federal salary threshold increase, and do not account for higher state salary thresholds. Calculations account only for wage increases of workers with new protections (i.e., they do not account for workers with strengthened protections). Source: EPI analysis of pooled Current Population Survey Outgoing Rotation Group microdata, 2016–2018, following the methodology used in the U.S. Department of Labor’s 2019 final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” 29 CFR Part 541 (published September 24, 2019). Share on Facebook Tweet this chart Embed Copy the code below to embed this chart on your website. Download image

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[1] Url: https://www.epi.org/blog/more-than-eight-million-workers-will-be-left-behind-by-the-trump-overtime-rule-workers-would-receive-1-4-billion-less-than-under-the-2016-rule/

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