Overtime for salaried workers may now be required. Today, in a historic move, the U.S. Labor Department issued updated overtime rules that will change life an estimated 12.5 million salaried workers who will now qualify for overtime pay.

The new rules will raise the salary threshold that employers must meet before they can deny overtime pay to certain workers—from $23,660 to $47,476. The old threshold was so low that even some workers living below the poverty line did not qualify for overtime.

Now, all salaried workers earning less than $47,476 per year will be entitled to overtime pay for working more than 40 hours a week, regardless of their job title.

While the rule raises the applicable thresholds for various exemptions, it also allows employers to count earnings paid to employees as bonuses and commissions toward meeting the salary threshold.  Specifically, the rule permits employers to meet up to ten (10%) of the salary threshold with amounts paid to employees as bonus and commission payments.

This means that employers can no longer use a loophole in the law—the pretense of managerial or other specialized duties—to deny these workers overtime pay or require them to donate their labor, free of charge, in extra hours of unpaid work. In short: the new overtime rule means a higher income or more time for family and friends—a better life overall—for millions of workers.

The loopholes many companies attempt to use to not pay overtime for salaried workers are the exemptions to the FLSA.  The “executive,” “administrative,” and “professional” exemptions are the ones on which most companies rely. This will no longer be allowed unless the higher salary threshold is met.

If you do not meet the higher salary threshold and the company is relying on one of these exemptions, you should be entitled to overtime and may have a cause of action for unpaid overtime against your employer. Effective December 1, 2016 companies will no longer be allowed to not pay overtime unless the higher threshold is met.

Contact me if you are not being paid the proper overtime. I will discuss your situation with you and make a determination if I believe you are entitled to overtime pay.