On June 29th, President Obama announced proposed changes to the federal overtime regulations, which will greatly increase the number of employees eligible to receive overtime. Under the current regulations, an employee performing certain job duties may be exempt from overtime if he/she is paid an annual salary greater than $23,660. In other words, so long as he/she is paid a salary of at least $23,660 per year, the employee may be required to work an unlimited number of hours per week. The proposed regulations would increase the threshold annual salary for overtime exemption to $50,440, which is the equivalent of $970 per week. Additionally, the proposed rule will index the overtime threshold to some measure to increase over time. The new minimum salary, which is likely to take effect in 2016, will restore the overtime threshold to where it approximately was in 1975 in terms of purchasing power.