Increase to Salary Threshold for Overtime Pay Set to Go into Effect
INCREASE TO SALARY THRESHOLD FOR OVERTIME PAY - SET TO GO INTO EFFECT U.S. Department of Labor Overtime Rule |
Effective July 1, 2024, exempt employees will be required to meet the updated minimum salary threshold for employers to avoid paying time and a half for hours worked that exceed 40 hours per week. These salaried employees typically work in an executive, administrative or professional environment. Salaried workers earning $684/week ($35,568 annually) will be eligible for an increase in pay that amounts to $844/week ($43,888 annually). This is effective July 1, 2024. A second increase is required by January 1, 2025 which will reflect $1,128/week ($58,656 annually). Salaried staff that makes less than the stated minimums will become eligible for overtime pay, or time and a half for hours worked that exceed 40 hours/week. On July 1, 2027 and every three years thereafter, the minimum salary level will be updated. While this rule is currently being appealed and numerous organizations have called for a delay in implementation until September, we strongly advise contacting your human resources department or an Employment and Labor Law attorney to verify if any staff qualifies for this update and what alternatives you may have. For further information, please find the following links – Webinar featuring USDOL, FAQs, and additional information regarding any exemptions to the rule. |