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Beginning Dec. 1, 2016, salaried employees making less than $47,476 a year or $913 a week will qualify for overtime pay for any work exceeding 40 hours. The new threshold doubles the current $23,660 threshold and would automatically make 35% of salaried workers eligible for time-and-a-half pay. The administration says the rule change is part of an effort to restore and expand access to the diminishing middle class.

In lieu of paying overtime wages, employers may also consider giving employees a raise to put them over the new threshold or keeping them under 40 hours. The change is expected to have the largest impact on retail and restaurants but will also affect the private sector including government and not-for-profit organizations.