Today, President Barack Obama and Secretary of Labor Thomas Perez announced the final ruling for overtime. In accordance with this final ruling, overtime pay eligibility will automatically be extended to 4.2 million workers.

This ruling is the product of the president's 2014 decision to update the Fair Labor Standards Act (FLSA) by modernizing it to be simpler and easier for businesses to understand and apply. The final ruling, which will go into effect December 1, 2016, will entitle most salaried white collar workers earning less that $913 a week to overtime pay.

Here is one of the impacts of the final ruling:

4.2 million salaried workers will be affected by this rule based on their salaries. These workers are currently ineligible for overtime. The Department estimates that most of them (4.1 million) will become eligible for overtime when they work more than 40 hours (i.e., they will be converted to overtime-eligible status), while others (100,000) will receive a raise so that their salary is above the new threshold.

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