New DOL Rule Expands Overtime Pay to Millions

ARTICLE | June 25, 2024

Authored by Vasquez + Company

The U.S. Department of Labor's new rule, effective July 1, 2024, will expand overtime eligibility under the Fair Labor Standards Act (FLSA) to four million additional workers by increasing the salary threshold for exempt workers. By January 1, 2025, the threshold for standard and highly compensated employees will rise further. Employers must evaluate their workforce to ensure compliance and may need to adjust salaries, manage overtime, or restructure pay.

Key Points:

  • Expanded Eligibility: Raises the salary threshold for overtime eligibility in two phases.
  • Higher Compensations: Adjusts thresholds for highly compensated employees.
  • Employer Strategies: Outlines options for compliance, such as salary adjustments or overtime management.
  • Duties Requirements: Clarifies exemption criteria based on job duties.

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