Obama Raises Overtime Salary Threshold: What You Need To Know

The Obama administration announced new rules governing salaried workers and overtime pay, mandating that anyone making less than $47,476 per year get paid time-and-a-half for any more than 40 hours per week worked.

So if you make $45,000 a year and work 50 hours a week, under the new rules you could make an extra $324.52 per week — or get 10 more hours of free time if your bosses don't want to pony up the extra cash.

"If you work more than 40 hours a week, you should get paid for it or get extra time off to spend with your family and loved ones," President Obama said in a statement announcing the change.

Here's what you need to know.

How many people will this affect?

The White House says the new rule will benefit 4.2 million Americans who will either be paid more or have more time off. The Economic Policy Institute pegs that number much higher, at 13.5 million workers benefiting.

When does this go into effect?

The new rules will take effect on December 1, 2016, giving employers about five and a half months to make necessary preparations.

What is changing?

Right now, only people making less than just $23,660 are required to get overtime pay.

In December, that number gets doubled to $47,476 and will increase every three years to account for inflation.

Are there exceptions to the rules?

There are a couple:

• Some professionals like teachers, doctors and outside sales representatives are exempt from overtime mandates.
• Up to 10 percent of the salary limit can be met through bonuses or commission, exempting people from mandatory overtime pay.

So, if you have a $45,000 a year salary and get a $3,000 bonus, you aren't required to get overtime pay.

What are the possible downsides?

Opponents of the new regulations say that employee morale will suffer as many will either be switched to clock-punching hourly employees or forced to keep track of their hours on their own.

They also say that employers will hire fewer workers.

"Most of the people impacted by this change will not see any additional pay," the National Retail Federation said in a statement. "Instead, this sudden and extraordinary increase will mean more red tape and fewer advancement opportunities for salaried professionals."

Can it be overturned?

It would be very difficult for the Republican-controlled Congress to do so. The new rules were passed under the Fair Labor Standards Act, which doesn't require congressional approval.

Of course, by the time the rules go into effect, America will have a new president-elect, who could work to have them changed entirely.