New overtime rule impacting 5 million workers goes into effect Dec. 1

More than 4 million U.S. workers will become newly eligible for overtime pay thanks to a Federal rule that goes into effect on Dec. 1.

The new Fair Labor Standards Act will be a boost to some worker’s wallets while others will keep the same pay but work fewer hours.

The new rule would make time-and-a-half mandatory for anyone earning less than $47,476 a year.

It would more than double the salary threshold under which employers must pay overtime to their white collar workers. Overtime protections would apply to workers who make up to $913 a week, or $47,476 a year, and the threshold would readjust every three years to reflect changes in average wages.

Based on projections, it is expected to rise to $51,000 by Jan. 1, 2020, after the first update.

The Department of Labor estimates that nationally 4.9 million workers will receive the overtime protection.

The industries most affected by the new Fair Labor Standards Act rule will likely be retail and hospitality.

-Read more at WKRN