The U.S. Department of Labor (DOL) announced a final rule of a revision to the Fair Labor Standards Act (FLSA).
Currently, salaried employees making less than $35,568 fall under the FLSA overtime pay protections, ensuring if they work more than 40 hours per week, they are legally entitled to be paid 1.5 times their regular pay for extra hours they work.
- On July 1, 2024, that minimum salary threshold for overtime pay will be raised to $43,888 per year, increasing the amount of U.S. workers eligible for overtime pay.
- On January 1, 2025, the salary threshold will be raised to $58,656.
Following the second increase in 2025, the salary threshold will be reevaluated every three years.
The rule will also increase the total annual compensation requirements for highly-compensated employees on July 1, from $107,432 to $132,964. The highly-compensated threshold will increase again on Jan. 1, 2025 to $151,164.
Coming to this decision to raise the overtime pay threshold was based on around 30 listening sessions across the country and over 33,000 written comments.
