This amount has been calculated based on the Department of Labor’s new overtime rule in effect since December 2016. The DOL overtime rule determines which employees are exempt from overtime and when are the employers required to pay higher wages for overtime hours worked.

Three conditions have to apply to make an employee exempt from overtime pay:

The employee must receive a salary from the employer.

The employee must have administrative or professional duties in his/her position.

The employee must be paid more than $913 per week or $47,476 per year.

Thus if you meet the first two conditions, and your salary is less than $913 per week, your employer must pay you a raised hourly rate (1,5x your regular rate) for overtime hours worked.

Our calculator calculates your weekly salary according to this new overtime rule with a 1,5x multiplier.

DISCLAIMER:

On November 22, 2016, U.S. District Court Judge Amos Mazzant granted an Emergency Motion for Preliminary Injunction and thereby enjoined the Department of Labor from implementing and enforcing the Overtime Final Rule on December 1, 2016. The case was heard in the United States District Court, Eastern District of Texas, Sherman Division (State of Nevada ET AL v. United States Department of Labor ET AL No: 4:16-CV-00731). The rule updated the standard salary level and provided a method to keep the salary level current to better effectuate Congress's intent to exempt bona fide white collar workers from overtime protections.

On December 1, 2016, the Department of Justice on behalf of the Department of Labor filed a notice to appeal the preliminary injunction to the U.S. Circuit Court of Appeals for the Fifth Circuit. The Department has moved to expedite the appeal.

More info on the DOL website.