Increased Threshold for Federal Overtime Pay Rule

For a worker to be exempt from the overtime pay rule under the Fair Labor Standards Act, a bona fide executive, administrative, or professional employee must earn more than a threshold amount. The DoL released a final rule aimed at expanding overtime pay protection for millions of workers. Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on January 1, 2025. The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used in the 2019 overtime rule update. Starting July 1, 2027, the salary thresholds will be updated every 3 years. #IdeaoftheDay

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