DOL Releases Final Overtime Rule That Is Expected to Extend Overtime Pay to Millions of Additional Workers
The U.S. Department of Labor announced the release of the pre-publication text of its final overtime rule updating the salary thresholds below which workers must be paid overtime under the Fair Labor Standards Act.
The new final rule takes effect July 1, 2024 and requires employers to pay overtime to most workers paid below $844 a week ($43,888 annually) regardless of their job duties and titles. This is a significant increase from the current threshold of $684 a week ($35,568 annually). Workers above this threshold may be exempt from overtime if their duties qualify them as an exempt executive, professional, or administrative employee under Part 541 of the regulations interpreting the Fair Labor Standards Act (or certain other discrete exemptions, for groups such as outside sales and computer employees). The final rule also raises this threshold to $1,128 a week ($58,656 annually) effective January 1, 2025. Thereafter, the final rule has a mechanism to update this threshold every three years.
More information on the final overtime rule is available on the DOL website here.
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