DOL Releases Final Changes to Overtime Rules, Workers Making Up to $47.4K Now Qualify

By:
Chris Gaetano
Published Date:
May 18, 2016
workingFortheWeekendThe Department of Labor has released the final version of new rules that will increase the threshold for who can qualify for overtime, from $23,660 to $47,476 annually, with further adjustments linked to inflation, according to Fortune. The new rules will affect 4.2 million U.S. workers who previously were exempt from receiving overtime. President Obama ordered the creation of these new regulations in 2014, saying that the then-current threshold had been set long ago and has since not kept up with the modern economy, particularly where it concerns executive, administrative and professional employees. While the proposal initially set the new threshold at $50,440, it was lowered in response to criticisms that this was too high, said Fortune. Despite the change, however, business groups like the U.S. Chamber of Commerce remain critical of the rule, saying it will have a chilling effect on employers and the economy as a whole. 

The new rule could also potentially impact CPA firms themselves, according to a September article in the Trusted Professional, particularly smaller firms that may not be able to pay workers as much. 

The new rule goes into effect Dec. 1 this year. 

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