Senator Ruben Gallego (D-AZ) has introduced a bill to raise the overtime pay rate for workers nationwide.
By How Much?
Sen. Gallego's Double the Wage for Overtime Act raises the overtime pay rate, which is currently 1.5 times a worker's hourly rate, to double their hourly rate.
To illustrate, if a job pays $15 an hour, overtime is $22.50 an hour. The Double the Wage for Overtime Act brings overtime pay for that $15/hour job to $30.
According to an Economic Policy Institute study, this would assist 13.4 million workers through a combination of more time off and increased pay.
After all, the 1.5 times standard has been in place since 1938 and has not changed since.
Moreover, employers are less likely to overwork employees to avoid paying the higher rate, encouraging less demanding hours and hiring more workers to cover more shifts.
What Gallego is Saying
"Workers have not seen their overtime rate double in nearly 90 years,"Sen. Gallego shared in press release. "And at a time when families are stretching every dollar to afford their needs, increasing the overtime rate will put more money in their pockets."
Previous Efforts to Boost Pay
At the beginning of July, the Arizona Senator called for raising the federal minimum wage to $20 an hour after a Federal Reserve Bank of New York report showed that workers' portion of national income has dropped to a historic low of 54.1%.
Moreover, nearly half of Americans surveyed by the Federal Reserve said their financial situation had worsened over the past year. Inflation recently hit a three-year high, credit card debt is going unpaid at rates not seen in 15 years, and wages haven't kept pace.
"The federal minimum wage is sitting at $7.25/hour while the ultra-rich get richer," Gallego posted on social media. "We need to give America a raise."
