More than 4 million salaried employees will be eligible for overtime pay after the Department of Labor announced a major overhaul to regulations. The ruling will have far-reaching implications for people who work more than 40 hours a week, and impact business owners across a wide expanse of industries.
With the federal minimum wage stagnant at $7.25 an hour, the move is part of the Obama administration's push for better protections for workers at many businesses, big and small.
The finalized rule announced Tuesday doubles the eligible salary threshold for overtime from $23,660 per year to $47,476 annually. Businesses will have until December to comply.
The rules include mechanisms to raise the threshold. The rules call for the Labor Department to adjust the maximum pay every three years. The Obama administration says the move will increase wages by $1.2 billion annually or $12 billion in the next decade.
Some sectors like retail already object to the new overtime mandate. And Main Street business owners and advocates have mixed feelings on the ruling. The White House, meanwhile, says the ruling will "boost our economy across the board, as these families spend their hard-earned wages."