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Breaking: The Department of Labor Finalizes New Overtime Regulations


Today, the Department of Labor finalized new overtime regulations that will impact countless workers in the United States.  Under current regulations, individuals that are classified as executives and managers are exempt from overtime regulations.  As well, salaried workers do not have to be paid overtime if they make at least $23,660.00 per year (which amounts to $455.00 per week).  

With the Department of Labor's new overtime regulations, effective December 1, 2016, the salary threshold at which white collar workers are exempt from overtime pay will be raised to $47,476.00 per year (or $913 per week).  (Meaning that if a white collar worker makes less than $47,476.00 per year, they will likely be entitled to time and a half overtime pay for all hours worked over 40 per week).  Note, this threshold will be updated every three years and be tied to a segment of salaried workers in the lowest income region of the United States.  According to the Department of Labor's estimates, an additional 4.2 million executive, administrative, and professional workers will be entitled to time and a half wages for each hour worked beyond 40 hours per week.

This change in the overtime regulations has been a work in progress for the Obama administration for nearly two years after facing an uphill battle from several pro-business groups.  It goes without saying that this is a big win for the administration (and many workers who will now be entitled to overtime pay).


The Department of Labor's Press Release on the topic:  https://www.dol.gov/featured/overtime

 

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