The Department of Labor (DOL) has a new overtime pay rule that went into effect on July 1, 2024. It raised the minimum salary for many workers up to $43,888 in order for them to not be paid overtime wages for any hours worked over 40 each week. Starting January 1, 2025, that minimum salary increases to $58,656. The Department of Labor’s news release has some more information on the ruling.
There are exceptions to the overtime pay rule for employees considered executive, administrative, or professional. The title of the employee does not determine if they qualify for the exemption; the specific work they perform is what would qualify them for the exemption. Although the dollar amounts have not been updated for the new rule, the Wage and Hour Division’s Fact Sheet #17B: Exemption for Executive Employees Under the Fair Labor Standards Act (FLSA) has more details on the different exemptions.
This is general information on this new ruling and is not legal advice. We want you to be aware of these changes. If you have any questions, please reach out and we will help if we can or direct you to someone that would be able to help.