Final Overtime Rule Released!

On Tuesday, April 23, 2024, the Biden-Harris administration announced that a final rule that increases overtime protections for the nation's lower-paid salaried workers to exempt salaried bona fide executive, administrative or professional employees from federal overtime pay requirements.

 

This rule ensures salaried workers making less than $58,656 receive fair pay for working over 40 hours---meaning, they will qualify for overtime.  

 

By increasing the salary threshold, this will be giving more workers pay or valuable time back with their family: by better identifying which employees are executive, administrative or professional employees who should be overtime exempt.  The rule ensures that those employees who are not exempt, receive time-and-a-half pay when working more than 40 hours in a week or gain more time with their families.

 

The rule will also establish regular to the salary thresholds every three years to reflect changes in earnings. 

 

Effective July 1, 2024, the salary threshold will increase the present annual salary threshold to $43,888 (from the 2019 threshold of $35,568).  Effective January 1, 2025, the threshold will be increased to $58,655.

(These dates have been added to our Compliance Calendar).

 

In addition to this threshold, it will also increase the highly compensated employee threshold.  Currently that salary threshold is at $107,432.

 

Starting July 1, 2027, the threshold(s) may increase every three years.  

 

Source(s): Department of Labor, News Release, received on April 23, 2024; WHD Fact Sheet 17H, accessed on April 25, 2024.