A new proposed rule could update the salary threshold for white collar workers under the Fair Labor Standards Act from $23,660 per year up to $47,892 a year. According to the Department of Labor, this change would extend overtime protections to an additional 5 million workers. The rule determines which employees are exempt from overtime pay. These regulations were last updated in 2004. The new salary threshold would be at the 40th percentile of weekly earnings for full-time salaried workers and, according to the Department of Labor, would potentially benefit many Americans:
For example, a convenience store manager, fast food assistant manager, or some office workers may be expected to work 50 or 60 hours a week or more, making less than the poverty level for a family of four, and not receive a dime of overtime pay.
The updated rule would also update the salary threshold for highly compensated workers, up from $100,000 to $122,148 per year. Comments on the rule can be made to the Department of Labor up until September 4. Learn more about the proposed rule here, and visit the Department of Labor to leave a public comment.