Goodbye $23,600 and hello $47,476.
On Wednesday, the Department of Labor announced an increase in the salary maximum for employees to make over time. Simply put, people who make under $47,500 will now automatically qualify for time and half after working 40 hours.
The change – which goes into effect on December 1, 2016 – is set to affect scores of working Americans, most notably those who are classified as “executive, professional, or administrative employees.” Restaurant workers, fast food chefs, certain journalists, and other entry-level professionals who burn the midnight oil, pushing 50 hours a week to make an impression will now reap the benefits.
Other backlash of this expansion to overtime may include employers offering higher salaries, or cutting hours. No matter the consequence, four million Americans will see some ripple, according to the Department of Labor. If you ask the Economic Policy Institute, that number jumps to 12.5 million.
Here’s a larger look at the numbers of people who will be affected.
If you know you're one of the many people whose paycheck will see a difference, use our salary calculator to work out some scenarios.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.