Wal-Mart Stores will raise salaries for entry-level managers to meet the new Obama Administration overtime rule at the same time that the company is cutting 7,000 back-office positions at its U.S. locations.

The Bentonville, Arkansas-based big-box retailer bumped salaries from $45,000 to $48,500 annually for employees, including store management, company spokesman Randy Hargrove said Tuesday, according to Reuters. It is unknown how many employees received the raise.

The Department of Labor’s Overtime Exemption Rule changes are set to take effect Dec. 1, and will require employers to pay overtime to salaried workers earning less than $47,500 a year, which is double the current threshold, set at $23,660. The rule will impact which employees are eligible for time-and-a-half overtime pay for hours worked in excess of 40 hours in a single week.

The company also wanted to make the changes before the busy holiday season, according to MarketWatch. Wal-Mart (NYSE: WMT) is currently the largest private employer in the U.S., with 1.5 million workers, including store employees, store management and truck drivers.

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