Your employer may have to start paying you overtime--even if you've been previously listed as an "exempt" employee--thanks to a new rule from the United States Department of Labor.

This new rule is expected to place more money in the hands of middle-class workers; it began in 2014 when President Obama directed the Secretary of Labor to update the current overtime regulations and make the rules easier for both employers and employees to understand.

The new overtime updates impact over 4.2 million workers nationwide. It goes into effect December 1, 2016; employers have about six months to prepare for the change.

Here's a more in-depth look at what the new overtime rule does (via the U.S. Department of Labor):

  • Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
  • Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
  • Strengthen overtime protections for salaried workers already entitled to overtime.
  • Provide greater clarity for workers and employers.

In response to this new rule, employers can either raise their employees' wages, pay their employees overtime benefits, or adjust their employees' schedules.

 

More From 95.3 The Bear