The U.S. Department of Labor (DOL) recently released new changes to their overtime regulations, which will provide overtime pay protection to more than 4 million workers within its first year. The rule, which has been in the works since 2014, will become effective on December 1, 2016 and aims to adequately compensate employees for the work they do.
President Barack Obama first ordered the DOL to review and make changes to their overtime rule in 2014. Since then, the department has made great strides in considering the needs of employees. In 2015, the DOL published a Notice of Proposed Rulemaking (NPRM) and received thousands of comments in response to the proposed change, which helped them finalize and format the new rule.
Some of the rule’s specific changes include:
- Workers who bring in an income of as much as $47,476 a year, or $913 a week, are mandated to be paid overtime.
- The DOL is required to raise the salary threshold once every three years. By January of 2020, it is expected to increase to more than $51,000.
If you have questions about the new rule and how it will affect your employment or business, call The Prinz Law Firm at 312.212.4450 or fill out our online form to schedule your initial consultation.