The Department of Labor released its final rule on May 18, 2016, revising the overtime exemption regulations of the Fair Labor Standards Act (FLSA) and making as many as 4.2 million employees eligible for overtime pay. Workers classified as exempt but making $47,476 or less will now be eligible for overtime earnings effective December 1. The goal was to simplify and modernize the rules, making it easier for workers and employers to understand and apply them. The salary threshold update was to preserve the original intent of the FLSA in offering overtime protection to those who qualify. While the FLSA has always had its share of complexities, the final rule is no different and poses particular challenges to employers. The new regulations will most likely bring change for both employers and employees as many review the impact on budgets, workflow, employee schedules, and employee morale. For small businesses, institutions of higher education, and nonprofit organizations, the new requirements present a difficult challenge. As employers sort though the potential effects of the final rule, any changes to job duties, schedules, and compensation / benefits will need to be communicated to employees.