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The DOL’s New Overtime Rule

A visual overview of the DOL’s new overtime rule.

Update: Just days before the final rule’s original effective date of December 1, 2016, a federal judge for the U.S. District Court for the Eastern District of Texas issued an injunction blocking the overtime rule and delaying its effective date indefinitely, the result of staunch opposition by 21 states and more than 50 business groups who sued to block the rule. While there has been additional back-and-forth activity between the DOL and the courts, as of now this rule appears to be DOA.

For more than a year the business community has been apprehensively waiting to see the final version Department of Labor (DOL)’s new overtime regulations, and they’re finally here. The biggest change? The final rule doubles the annual salary threshold employees are required to meet in order to be considered exempt for overtime pay under the white collar exemptions of the Fair Labor Standards Act (FLSA). (Although this final amount is slightly less than the proposed $50,440/year, it’s still quite a large increase.)

The infographic below presents an outline of the changes, as well as the potential impact of the rule on both workers and employers.

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