Last month, the U.S. Department of Labor outlined changes to the existing overtime exemptions. Is this a win for workers? And a loss for employers? In truth, the real effect on both groups and the economy is much more nuanced.

As you are probably aware, some employees are exempt from being paid overtime, meaning their employers don’t have to pay them extra when they work more than 40 hours in a week. The Fair Labor Standards Act outlines the criteria for this exemption.

Employees currently qualify for exempt status by clearing two hurdles: 1) the duties test (i.e., position is executive, administrative, or professional); and 2) the salary test (worker earns at least $455 a week or $23,660 a year).

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