Under US Dept. of Labor amendment 4.2 million Workers will be Eligible for Overtime

The U.S. Department of Labor (DOL) has released its long-awaited Final Rule updating regulations under the Fair Labor Standards Act (FLSA) governing overtime exemptions for executive, administrative, and professional employees, commonly known as the “white collar exemptions” or “EAP exemptions.” DOL estimates 4.2 million workers will be eligible for overtime as a result of the Final Rule and that it will result in an increase in wages of $1.2 billion per year. Under the rule, the new salary level for these exemptions to apply is $47,476, more than double the current salary level. The salary level for highly compensated employees (HCEs) will increase from $100,000 per year to $134,004. In addition, for the first time in the history of the FLSA, adjustments to the salary level will occur automatically every three years, and will not require specific rulemaking.