GRAND RAPIDS – For the first time in 12 years, the U.S. Department of Labor has announced an update to the overtime rule that will greatly impact America’s middle class.

The ruling, officially announced by President Barack Obama and Department of Labor Secretary Thomas Perez on May 18, increases the salary threshold for paid overtime from $455 per week to $913 per week. Formerly, salaried workers were only eligible for paid overtime if they earned an annual salary of $23,660 or less. Under the new ruling, employees with annual salaries of $47,476 will be eligible for paid overtime if they work more than 40 hours in a week.

According to the DOL, the new rules will extend overtime protection to 4.2 million workers in the United States. However, the Economic Policy Institute estimates that the laws will impact up to 12.5 million Americans, many of whom are currently mis-classified as having job duties that preclude receiving overtime.

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