If you’re in or around the world of HR, you’ve been awaiting the details of the new overtime rule within the Fair Labor Standards Act (FLSA) — effective Dec. 1. This was done at the behest of President Obama, and executed by the Secretary of Labor. According to the U.S. Department of Labor, the new rule will:
- Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers
- Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability
- Strengthen overtime protections for salaried workers already entitled to overtime
- Provide greater clarity for workers and employers
Here’s a video of Secretary Tom Perez explaining and advocating for the new rule:
Let it be known that not all are so enthusiastic, however. Opponents – a list that includes us at the Indiana Chamber, the U.S. Chamber, Society for Human Resource Management, many legislators and policy institutes – assert the new rule is unreasonable for several reasons, including the fact that some employees will lose their coveted professional exempt status.
UPDATE: Here’s more information from the U.S. Chamber on why this measure is so onerous.