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Overtime eligibility increase to have big impact on restaurants

Restaurateurs and other employers have until December to comply with a new federal overtime standard that will dramatically increase the number of workers who qualify for extra pay.

The final rule, being published today, doubles the salary threshold for employees to be considered exempt, from $23,360 to $47,476 — meaning that managers would have to receive at least $47,460 to considered salaried workers. The rules are expected to make another 4 million workers eligible for overtime pay.

The new rule also increases the threshold every three years so the standard keeps pace with inflation.

Yet the Department of Labor in its final rule gave restaurants more time than expected, setting the effective date at Dec. 1.

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