Navigate the New Overtime Rule
We’re here to help you stay up-to-date!
It’s no surprise that rules and regulations in the business world are constantly changing. We’re here to help keep you up to date on the latest rulings, including the recent updates to overtime protections.
What Changed?
In April of 2024, the Department of Labor revised its ruling under the Fair Labor Standards Act (FLSA) regarding minimum wage exceptions and overtime pay requirements for executive, administrative, and professional employees. The exempt annual salary threshold has been increased from $35,568 to $43,888 effective July 1, 2024, with a second increase to $58,656 expected on January 1, 2025. The updated ruling also includes a system that will adjust earning thresholds every three years.
What Does This Mean for My Business?
Employees in executive, administrative, or professional (EAP) roles may be exempt from the Fair Labor Standards Act minimum wage and overtime protections, and these changes in salary thresholds means your business must reevaluate which positions qualify. For instance, any exempt employee with an annual salary less than $43,888 must now be paid hourly and will become eligible for overtime where they may not have been previously.
Sound Confusing?
It doesn’t have to be! Our team of HR experts is here to guide you through the process and help your business implement the necessary changes that come with new Department of Labor rulings. We prioritize making your legal foundation strong so the rest comes easy, and these updates are no exception.