New Federal Overtime Rules
05/01/2024
On Tuesday, April 23rd, the Biden-Harris administration announced a final rule that expands overtime protections for millions of American workers by increasing the salary thresholds that are required under the Fair Labor Standards Act (FLSA). The updated rule defines and delimits who is a bona fide executive, administrative, and professional employee exempt from the overtime protections. The rule’s effective date is July 1st, 2024.
According to details in an April 23rd news release from the Department of Labor (DOL), the salary amount threshold for overtime will increase on July 1st, 2024 from $35,568 to the equivalent of an annual salary of $43,888. On January 1st, 2025, the threshold will increase again to $58,656.
Employers don’t have much time to prepare for the new increases that will take effect. This article outlines the new rules and planning/actions to consider: