© 2020 Texas Public Radio
Real. Reliable. Texas Public Radio.
Play Live Radio
Next Up:
Available On Air Stations

The Source: Will New Overtime Regulations Help The Economy?


The Obama Administration and the Department of Labor issued new rules related to who is and who isn't eligible for overtime pay. According to the Fair Labor Standards Act, employees who work more than 40 hours should receive overtime pay unless exempted. 

The current threshold for a white-collar exemption is $23,660 per year. The new definition - which goes into effect December 1, 2016 - raises the exemption salary level to $47,476 a year. You can read the final rules here.

There is a lot of debate about whether the economy will be helped or hurt by the new rules. Some argue that they will strain businesses. Others have predicted it will get create more than 100,000 jobs, reduce hours for an overworked and underpaid group of people, and grow the economy. 


  • Ross Eisenbrey, vice president of the Economic Policy Institute
  • Bob Kilgore, lawyer at Fisher & Phillips
  • Karen Dulaney Smith, former wage and hour investigator for the Department of Labor, now runs KDS Consulting.
Paul Flahive can be reached at Paul@tpr.org and on Twitter at @paulflahive