Salaried workers who make less than $43,888 a year will qualify for overtime pay effective July 1.
The U.S. Department of Labor (DOL) on April 23 announced a rule that increases the salary threshold that exempts employers from paying salaried workers when they work more than 40 hours a week. The change affects nearly 4 million workers — they’ll either be paid overtime when they work over 40 hours, or they’ll have to work fewer hours, or they’ll get a salary bump to the new threshold.
The Fair Labor Standards Act exempts executive, administrative, or professional employees from the right to overtime pay when they work more than 40 hours in a week. A worker’s salary level and job duties determine whether they are considered an executive, administrative, or professional employee.
The DOL rule increases the salary threshold from its current threshold of $35,568 to $43,888 on July 1, raises it to $58,656 on Jan. 1, 2025, then adjusts it every three years after that based on national wage data.
The last time the threshold was updated was 2019.
DOL Wage and Hour Division Administrator Jesica Looman said the rule creates clear and predictable guidance for employers while ensuring that lower-paid salaried workers are fairly compensated for their time.
