Final rule raises minimum salary level threshold to $47,476. Provides mechanism for updating salary level every three years.
Yesterday, President Obama and U.S. Department of Labor Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will extend overtime pay protections to over 4 million workers within the first year of implementation.
The final rule:
- Raises the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), expanding overtime pay eligibility to 4.2 million workers in the U.S..
- Automatically update the salary threshold every three years, based on wage growth over time.