According to reports from various news outlets, including the Washington Post, President Obama will tomorrow announce plans to raise the amount a worker must receive in weekly salary to be classified as “executive, administrative or professional” employees (also called “salaried employee”), classifications an employer can exempt from federal requirements related to paid overtime.

Update | Department of Labor Issues Final Rule on Overtime Pay | 2016

Here are some facts about”salaried” employees and what the changes will likely mean:

  • Paid overtime became federally regulated under legislation called The 1938 Fair Labor Standars Act.
  • The act requires most employees to be paid overtime after working 40 hours during a week.
  • Companies can classify certain employees as being “executive, administrative and professional” (salaried) employees and exempt them from overtime pay requirements.
  • Currently, an employee must make at least $455 per week to be included in these exempt classifications, an amount set in 2004.
  • By raising the $455 exemption to a higher amount, paid overtime requirements will be expanded to millions of employees currenetly not covered, according to a White House official quoted by the the Post.
  • Employers will not have to pay overtime to salaried employees who make more than the exempted amount.

(Featured Photo: tj.blackwell via Flickr)

Related Articles