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U.S. Labor Department headquarters in Washington, D.C. Photo: Mike Scarcella

The U.S. Labor Department has unveiled a long-awaited proposal that makes more than 1 million workers eligible for overtime. The proposal sets up renewed tension for stakeholders and will eventually shake up how employers pay and classify their workforce.

Currently, employees with a salary below $23,660 a year must be paid overtime—time and a half their hourly rate—if they work more than 40 hours per week. That salary level was set in 2004. A 2016 proposal by the Obama administration, which was blocked by a Texas federal judge, would have doubled that salary threshold to roughly $47,000. Unlike the Obama measure, the new proposal does not call for automatic adjustments.

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