In 2014, President Obama directed the Secretary of Labor to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act, and to simplify and modernize the rules so they’re easier for workers and businesses to understand and apply. The department has issued a final rule that will:
- Raise the salary threshold indicating eligibility from $455/week to $913/week – which is roughly $47,476 annually (if 100%FTE), 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.
While the final rule will become effective December 1, 2016; the University will implement changes effective October 1, 2016.
