The Overtime Rule

The Overtime Rule

In 2014, President Obama directed the Secretary of Labor to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act, and to simplify and modernize the rules so they’re easier for workers and businesses to understand and apply. The department has issued a final rule that will put more money in the pockets of middle class workers – or give them more free time.

The final rule will:

  • Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
  • Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
  • Strengthen overtime protections for salaried workers already entitled to overtime.
  • Provide greater clarity for workers and employers.

The final rule will become effective on December 1, 2016, giving employers more than six months to prepare. The final rule does not make any changes to the duties test for executive, administrative and professional employees.     
 

 

IN RESPONSE TO THE NEW OVERTIME RULE, EMPLOYERS CAN: A) Pay time-and-a-half for overtime work. B) raise workers' salaries above the new threshold. C) Limit workers's hours to 40 per week. D) Some combination of the above.

 

 

Overtime updates will extend protections to 4.2 million workers across the country.

 

Map of the United States showing by state how many people will be extended protection by overtime updates.