The New Overtime Rule

The U.S. Department of Labor issued a final rule today changing the white collar overtime provisions of the Fair Labor Standards Act.  The final rule, which goes into effect on December 16, will:

  • Raise the  salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers; and,
  • The salary threshold will be automatically updated every three years, based on wage growth over time, increasing predictability.

This is a big achievement for the U.S. Department of Labor, which has had a decidedly mixed record under the Obama administration, and will benefit millions of low-paid workers – many of whom are women.

For now, white collar workers who earn more than $47,476 per year can still be subjected to merciless exploitation by their  corporate overlords.

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