News

Labor and Employment Alert: U.S. DOL Releases Final Rule Expanding Overtime Eligibility

News |May 6, 2024|1 min read

New DOL Rule Makes More Employees Eligible for Overtime

Employers have had many questions related to the new overtime rule that was recently announced by the U.S. Department of Labor (DOL). This new rule requires employers to meet a significantly higher salary threshold—up to a 65% increase—to classify certain employees as exempt from the FLSA’s overtime regulations.

Starting July 1, 2024, most salaried workers who earn less than $844 per week will become eligible for overtime pay under the final rule. And on January 1, 2025, most salaried workers who earn less than $1,128 per week will become eligible for overtime pay.

Although legal challenges claiming the DOL exceeded its authority in issuing the rule are expected, businesses must be ready to comply with the final rule in its current form unless and until a court enjoins the rule from taking effect before the July 1, 2024 effective date.

Click on the link below for additional information, including recommended steps for employers to take prior to the rule’s effective date.

Scholten Fant LE Advisory – DOL Final Rule – 05.06.2024

For more information on this topic, please reach out to the author: Tiffany R. VanderKolk