The new Federal Law initiates modifications in the overtime rule that customizes the pay for the overtime employees. To have white-collar exemptions, the employees must be paid with at least a threshold amount of salary and meet certain duties.
With the offset of the new overtime rule, the employers are required to pay an amount which is 1.5 times to that of their hourly rate if the working hours exceed 40 in a workweek. This rule has been set in compliance with the Fair Labor Standard Act (FLSA).