The Obama Administration announced Tuesday its final rules lifting the threshold for overtime pay.
The new threshold is $913 per week or $47,476 per year, which comes in slightly lower than the $970/week ($50,440/year) some experts expected. The current threshold is $455/week, or $23,660 per year.
Obama initially proposed lifting the threshold for overtime pay — the earnings level below which companies must pay employees time-and-a-half for overtime — last summer. The new rules go into effect Dec. 1.
“The final rule provides some concession to employers in allowing the regular payment of non discretionary bonuses and commission to count towards 10% of the standard salary level. Employers also have time to comply before the Rule comes into force,” said Fiona Coombe, CCWP, director of legal and regulatory research for Staffing Industry Analysts. “However employers should review their workforce now to see how many employees, who were formerly exempt, will now be eligible for overtime pay, to be ready for Dec. 1 deadline.”