On May 18, 2016, the White House announced the publication of the long-anticipated final rule updating overtime regulations. Notably, this rule increases the standard compensation threshold needed to qualify for exemption from overtime pay under the Fair Labor Standards Act from $455 per week to $913 per week (or $47,476 per year).

These new rates will go into effect on December 1, 2016. Additional updates to these rates will occur every three years, beginning January 1, 2020, to maintain a threshold equal to the 40th percentile of weekly earnings for full-time salaried workers in the lowest-wage Census Region.