DOL Issues New Overtime Rules, Effectively Increasing Wages for 4.2 Million Employees

Over 4 million workers stand to benefit from the new overtime rules published today by the U.S. Department of Labor.

4.2 million to be exact, according to the agency.

The big change in the rules is the effective doubling of the salary exemption from overtime from $23,660 a year to $47,476. Employees who make below that salary and will be entitled to overtime if they work more than 40 hours a week.

Under the rule DOL will update the salary threshold every three years; the proposed rule had called for the threshold to be indexed annually depending on the inflation rate.

As for how employers could respond to the rule, the DOL lists four options:

  1. pay time and a half for overtime work;
  2. raise workers’ salaries above the new threshold;
  3. limit workers’ hours to 40 per week; or
  4. some combination of the above.

Along with the text of the rule published in today’s Federal Register, DOL issued a document, Who Benefits From the Overtime Rule.

I wrote about the proposed rule last July.

The rules apply starting December 1.



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