The U.S. Department of Labor issued a final rule that expands overtime protections for millions of workers nationwide. Specifically, the new rule increases the salary thresholds that certain employees must receive in order to be exempt from overtime pay requirements.
As of July 1, 2024, employees who are bona fide executive, administrative, or professional employees must receive a minimum of $43,888 in order to be exempt from overtime regulations, and as of January 1, 2025, the threshold will increase to $58,656, both of which mark significant increases of the current threshold of $35,568. The rule will also make changes for “highly compensated” employees and further requires that every three years, starting July 1, 2027, the thresholds must be updated.
As a reminder, states are free to enact their own minimum thresholds that are greater than those set by the federal governments, so employers should also check with their local requirements to make sure they are compliant with all levels of government.
The attorneys at Outside Legal Counsel LLP can help ensure that employers are in compliance with this new law. Please reach out to us for more information about our services and how we can help.
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