New Overtime Rule to Affect Millions of Workers

20160601

presmemoThe Obama administration has announced a new rule that will regulate overtime pay for white collar workers throughout the nation. According to U.S. Department of Labor officials, the rule updates guidelines for salaries of executive, administrative and professional workers.

In previous explanations President Obama and Department of Labor Secretary Thomas Perez have said the underlying purpose of the measure is to define which workers are protected by the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).

The rule sets a base salary for employees who are exempt from FLSA and includes a mechanism for updating it every three years. Provisions stipulated in the new rule will apply to all sectors of the U.S. economy.

For more details, visit https://www.dol.gov/WHD/overtime/final2016/. Employers must be prepared to implement the rule by Dec. 1.