Tick-Tock: The Overtime Clock Starts Running For Millions More Workers

May 24, 2016

On May 18, 2016, the U.S. Department of Labor’s Wage and Hour Division (“DOL”) issued a final rule modifying overtime eligibility under the Fair Labor Standards Act (“FLSA”). The final rule, which goes into effect on December 1, 2016, increases the salary threshold for overtime eligibility for exempt executive, administrative, and professional employees to $47,476 per year. It also increases the salary requirement for the “highly compensated” exemption to $134,004 per year. The DOL calculates that this will extend overtime pay eligibility to 4.2 million workers currently classified as exempt.

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